Rise in NPAS in the Banking Sector

parliamentBy Accommodation Times News Services

The details of Gross Advances, Gross Non-Performing Assets (GNPA)+ Restructured Advances and Gross NPA + Restructured Advances ratio of Scheduled Commercials Banks (SCBs) for last three years are as under:

 

SCHEDULED COMMERCIAL BANKS (Rs. In crore)

GROSS

ADVANCES

GROSS NPA + RESTRUCTURED ADVANCES

GNPA + RESTRUCTURED ADVANCES RATIO

FY 2014

61,01,775

6,08,967

9.98%

FY 2015

66,91,204

7,28,925

10.89%

FY 2016

72,73,202

8,32,786

11.45%

 

Main reasons for increase in NPAs of banks are slowdown in recovery in the global economy and continuing uncertainty in the global markets leading to lower exports of various products like textiles, engineering goods, leather, gems, etc. The PSB’s continue to be under stress on account of aggressive lending in the past.

 

NITI Aaayog has not moved any proposal to create a bad bank to hold the stresses and non-productive assets and loan recovery of banks.

 

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.





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