New Delhi: Total bad loans of commercial banks declined by Rs 1.02 lakh crore to Rs 9.34 lakh crore in the 2018-19 fiscal on the back of steps taken by the government, Finance Minister Nirmala Sitharaman said.
The government has instituted a comprehensive 4R's strategy for recognition of non-performing assets (NPAs) transparently, resolution and recovery of value from stressed assets, recapitalising of public sector banks (PSBs) and reforms in PSBs so as to reduce their bad loans, Sitharaman said.
Change in credit culture with the Insolvency and Bankruptcy Code (IBC) fundamentally changing the creditor-borrower relationship, taking away control of defaulting companies, debarring wilful defaulters from taking part in resolution process are key, she said.
During 2018-19, the maximum number of frauds, involving Rs 1 lakh and above, were reported by ICICI Bank (374), Kotak Mahindra Bank (338), HDFC Bank (273), SBI (273), Axis Bank (195) and American Express Banking Corporation (190), the minister said further.
