Non-performing assets (NPA) or bad loans banks decreased by 61,180 crores to 8.34 lakh crores at the end of March 31, 2021 as a result of various steps taken by the government, Minister of State Finance Bhagwat K. Karad said on Monday.
Scheduled ads banks (SCB) had Rs 8.96 million NPA on its balance sheet at the end of March 2020.
“Primarily as a result of the transparent recognition of stressed assets as NPIs, the gross NPIs of the SKB, according to RBI’s Global Operations data, increased from Rs 3.23,464 crores as of March 31, 2015 to Rs 10.36,187 crores as of March 31, 2018. , and as a result of the government’s strategy of recognition, settlement, recapitalization and reform, has since decreased to Rs 9.33,779 at March 31, 2019, Rs 8.96,082 at March 31, 2020 and further to Rs 8.34,902 crores. (preliminary data) as of March 31, 2021, ”he said.
Karad, in a written response to Lok Sabha, said that the RBI’s COVID-19 regulatory package allows lending institutions to provide a six-month moratorium on all payments due between March 1 and August 31, 2020, in respect of all term loans and defer the collection of interest for the same period in respect of working capital.
In response to another question, Karad said that the gross NPA of the public sector banks (OBO) peaked at Rs 8.95,601 on March 31, 2018.
As a result of the government’s strategy of recognition, authorization, recapitalization and reforms, NPA has since declined to Rs 7.39,541 crores at March 31, 2019, Rs 6.78,317 crores at March 31, 2020 and further to Rs 6,16,616 crore at as of March 31, 2019 March 31, 2021 (preliminary data).
“Net NPA shows a similar trend, initially increasing from Rs 1.24,095 at March 31, 2014 to Rs 2.14,549 at March 31, 2015, Rs 3.24,372 at March 31, 2016, Rs 3.82,087 at March 31, 2015. .2017 and peaking at Rs 454,221 as of March 31, 2018 and subsequently declining to Rs 2.84,689 at March 31, 2019, Rs 231,551 at March 31, 2020 and further to Rs 1,97360 at March 31, 2018. (preliminary data), ”he said.
During this period, he said, PSBs continued to report cumulative operating income of Rs 1.37,151, Rs 1.58,994, Rs 1.55,603, Rs 1.49,819, Rs 1.74,640 in fiscal 2015. … 16, 2016-17, 2017-18, 2018-19 and 2019-20, respectively.
“However, primarily due to the continuing aging clause for NPA, they have created cumulative reserves for NPA and other contingencies of Rs 1.55,226, Rs 1,70,371, Rs 2,40,956, Rs 2,17,481 and 2 00 404 rupees. respectively, resulting in cumulative net losses of Rs 17,993, Rs 11,389, Rs 85,370, Rs 66,636 and Rs 25,941 respectively, and a return to profitability thereafter with a cumulative net profit of Rs 31,820 in 2020-2021 fiscal year. ” he said.
At the same time, comprehensive steps have been taken to monitor and rebuild the NPA, allowing the PSB to recover Rs 5.01,479 crores over the past six fiscal years, he added.
In response to another question, Karad said overall growth in regular commercial bank (SCB) lending remained positive in 2020-2021, despite a decline in GDP (-7.3 percent) due to the COVID-19 pandemic.
SCB’s “total outstanding loans and advances” increased from Rs 109.19 million at March 31, 2020 to Rs 113.99 million at March 31, 2021, he said.
In addition, he said that according to RBI data on loans to agriculture and related activities, micro, small and medium-sized enterprises, housing and cars showed an annualized growth of 12.3%, 8.5%, 9.1% and 9.5%. percent respectively throughout the year.
The ability of PSBs to further increase lending is evident thanks to the capital to risk-weighted ratio, which stood at 14.04% as of March 31, 2021, compared with a regulatory requirement of 10.875%, he added.
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