New Delhi, March 5 : Union Finance Minister P Chidambaram on Wednesday said that the biggest challenge before the public sector banks are the Non Performing Assets (NPA), and added that he has asked them to focus on NPA's recovery.

"Biggest challenge facing the public sector banks is NPAs and their asset qualities. The NPA's are system generated and therefore their figures are more accurate than what it was reported some years ago. We have asked banks to focus on recovery of NPAs," Chidambaram said after reviewing the quarterly performances of Public Sector Undertaking ( PSU) banks.

Chidambaram also said that the Cabinet Committee on Investment (CCI) has cleared 297 projects worth Rs. 6.6 lakh crore.

He also informed that banks recovered NPA's worth Rs. 18,933 crore during April to December.

Chidambaram also said that the model code of conduct will came into effect from today will not come in the way of issuing new bank licenses. (ANI)