Free Press Journal

Gross NPAs of PSBs jump nearly `80,000 crore in July-September period

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New Delhi : Public banks have seen nearly Rs 80,000 crore increase in gross non-performing assets (NPAs) in the three months ended September 2016, reports PTI. As on September 30, gross NPAs of public sector banks rose to Rs 6,30,323 crore as against Rs 5,50,346 crore by June end. This works out to an increase of Rs 79,977 crore on quarter on quarter basis. “The government has taken sector-specific measures (infrastructure, power, road textiles, steel etc) where incidence of NPA is high,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Rajya Sabha. He listed measures like enactment of the Insolvency and Bankruptcy Code (IBC) and amendment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and the Recovery of Debt due to Banks and Financial Institutions (RDDBFI) Act aimed at improving resolution or recovery of bank loans. Besides, he said, RBI has come out with a number of tools such as corporate debt restructuring, formation of Joint Lenders’ Forum, strategic debt restructuring scheme and sustainable structuring of stressed assets to fight NPAs. In another reply, Gangwar said that out of Rs 2.80 lakh crore loans to the iron and steel sector at the end of June, Rs 1.24 lakh crore has gone bad, which works out to 44.54 per cent.

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