Bad loans of PSU banks mounted due to economic slow down: FM

Tags: Banking
Government today said non-performing assets (NPAs) of PSU banks have mounted due to economic slow down even as recovery increased to Rs 33,486 crore in 2014.

Finance Minister Arun Jaitley said bad loan amount in the last fiscal has mounted to Rs 2,45,809 crore from Rs 1,83,854 crore in 2012-13 and Rs 1,37,102 crore in 2011-12.

"NPAs have increased as the economy of the country has slowed down in the last two years," he said during Question Hour in Lok Sabha.

Jaitley said the total gross NPA ratio has gone up to 4.03% in 2013-14 from 3.42% in 2012-13 and 2.94% in 2011-12.

India's economy has posted sub-five% growth for the last two consecutive financial years.

Jaitley said many industries have suffered losses in the last two years leading to their inability to repay the loans.

"Besides, there are many people whose intentions are not good. They do not want to repay the loans," he said.

The Finance Minister said the Reserve Bank of India has taken a number of steps to recover the bad loans of PSU banks that resulted in recovery of Rs 33,486 crore in 2014, Rs 19,832 crore in 2013 and Rs 17,272 crore in 2012.

Jaitley said RBI has taken a number of steps to recover the NPAs that include creation of a Central Repository of Information on Large Credits (CRILC) to collect, store and disseminate credit data to banks on credit exposures of Rs five crore and above, formation of Joint Lenders' Forum, Corrective Action Plan and sale of assets.

"RBI has issued instructions to the banks to review slippages in asset classification in the borrowal accounts with outstanding Rs five crore and above by the Board of Directors of the bank and review NPA accounts which have registered recoveries of Rs 1 crore and above. Further, Management Committee of Board should review top 100 borrowal accounts of below Rs five crore in each category of NPA," he said.

EDITORIAL OF THE DAY

  • J Jayalalithaa’s death invites questions on the future course of Tamil Nadu politics

    The death of Tamil Nadu chief minister J Jayalalilthaa, an all-powerful regional leader who has left behind no successor who can even remotely match h

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

<b>Cut & Thrust:</b> At the cost of human life

Can we put a cost to human life? The incident ...

Urs Schoettli

japan’s trump card

Like most, the Japanese, too, were surprised by the election ...

Rajgopal Nidamboor

Soul consciousness and reason

The soul, in the philosophical writings of ancient Greece, has ...