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Press Information Bureau
Government of India
Ministry of Finance
30-August-2012 16:55 IST
Extent of NPAs of PSBs & Monitoring Thereof

The Gross Non-Performing Assets (GNPAs) of Public Sector Banks (PSBs) as on March 2012 were Rs.1,12,489 crore which amounts to 3.17% of Gross Advances and as on June 2012, they stand at Rs.1,23,462 crore which amount to 3.48% of Gross Advances.  The details of GNPAs and ratio of GNPAs to Gross Advances of PSBs for the last two years, bank-wise, are given below:

 

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          The ratio of GNPAs to Gross Advances in Private Sector Banks as on June 2012 was 2.12% as against 3.48% in respect of PSBs.  This ratio in PSBs in March 2011 was 2.32%.

 

          The increase in NPAs in PSBs is due to switching over to system based recognition of NPAs.

 

          Banks are required to monitor their NPAs and take steps to bring them down through recovery/other channels.  Reserve Bank of India also monitors the NPA levels in banks.  This aspect is reviewed during Annual Financial Inspections of Banks and monitored on an ongoing basis through regulatory returns submitted by banks and periodical meetings with banks.  The channels of recovery available to banks include recourse to Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,  2002, Debt Recovery Tribunals, Lok Adalats etc.

 

          The Government has advised PSBs to take a number of new initiatives to increase the pace of recovery and manage NPAs, which include appointment of Nodal officers for recovery, to conduct special drives for recovery of loss assets, to put in place early warning system, to replace system of post dated cheques with Electronic Clearance System (ECS) and to proactively pursue the loan issues with State Governments

 

This information was given by the Minister of State for Finance, Shri   Namo Narain     Meena in written reply to a question in Rajya  Sabha today.

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