Parliament proceedings | Gross NPAs of PSBs decline to ₹6.09 lakh cr in September 2020: Anurag Thakur
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Provision protection ratio of PSBs is at over 8 years excessive at 85.06% on the finish of September 2020
Gross non-performing property (NPAs) of public sector banks (PSBs) declined from ₹8.96 lakh crore in March 2018 to ₹6.09 lakh crore in September 2020 due to varied measures taken by the federal government, Minister of State for Finance Anurag Singh Thakur knowledgeable Rajya Sabha on February 9.
There was file restoration of ₹2.54 lakh crore throughout March 2018 and September 2020 and 11 out of 12 PSBs reported revenue in the primary half of 2020-21 amounting to ₹14,688 crore, he mentioned in a written reply to the Rajya Sabha.
Provision protection ratio of PSBs is at over 8 years excessive at 85.06% on the finish of September 2020.
Asset high quality evaluation (AQR) initiated in 2015 for cleansing up banks’ steadiness sheets revealed excessive incidence NPAs, he mentioned.
As a consequence of AQR and subsequent clear recognition by banks, he mentioned, careworn accounts have been reclassified as NPAs and anticipated losses on careworn loans, not offered for earlier underneath flexibility given to restructured loans, have been offered for.
Further, all such schemes for restructuring careworn loans have been withdrawn in 2017-18.
“Primarily as a result of transparent recognition of stressed assets as NPAs as per RBI data on global operations, gross NPAs of PSBs rose from ₹2,79,016 crore as on March 31, 2015, to ₹8,95,601 crore as on March 31, 2018, and as a result of government’s strategy of recognition, resolution, recapitalisation and reforms, have declined to ₹6,09,129 crore as on September 30, 2020,” he mentioned.
Replying to one other query, Mr. Thakur mentioned PSBs have raised ₹50,982 crore in the shape of each fairness and bonds throughout 2020-21.
To complement this, he mentioned, authorities has infused capital of ₹5,500 crore in PSBs out of Budget provision of ₹20,000 crore made for this objective in the present monetary yr.
For the following monetary yr, provision of ₹20,000 crore for recapitalisation of PSBs has been included in the Budget just lately tabled in Parliament.
