Press Esc to close
Wednesday 24 August 2016
News updated at 10:07 AM IST
Weather
Max: 30.6°C
Min : 20.9°C
In Bengaluru
Sunny day

NPAs of public sector banks on the rise

NEW DELHI, Nov 29, 2012, DHNS

SBIs NPAs increased to 5.16% in Sept

The non-performing assets (NPAs) of public sector banks rose close to one percentage point from 3.17 per cent to 4.01 per cent in six months to September 2012, the government informed Parliament on Thursday.

To improve the health of financial sector, reduce NPAs and improve asset quality of banks and to prevent slippages, the Reserve Bank of India has issued instructions that each bank is required to have a loan recovery policy, Minister of State for Finance, Namo Narain Meena, informed the Rajya Sabha.

The banks are required to monitor their NPAs and take steps to bring them down through upgradation, recovery or loan write-off. The RBI also monitors the NPA levels in banks.

The government has also asked the public sector banks for a number of new initiatives to increase the pace of recovery and manage NPAs, which include appointment of nodal officers for recovery, to conduct special drives for recovery of loss assets and to put an early warning system in place.

NPAs of the largest public sector bank, the State Bank of India group, too increased to 5.16 per cent in September from 4.36 per cent in March this year, Meena said.

Banking experts have, however maintained that the asset quality of banks will remain under pressure in coming months due to sluggishness in the economy and high interest rates.


Go to Top

Photo Gallery
The launch of Entrepreneurship Summit at IT Decode Park in Hyderabad...

The launch of Entrepreneurship Summit at IT Decode Park in Hyderabad...

Horses undergoing exercise and training by handlers at Race Course in Bengaluru...

Horses undergoing exercise and training by handlers at Race Course in Bengaluru...

A child plays in front of idols of Lord Ganesha ahead of Ganesh festival ...

A child plays in front of idols of Lord Ganesha ahead of Ganesh festival ...

Hyundai Motors India unveils the all new Elantra...

Hyundai Motors India unveils the all new Elantra...

Priests perform Gaja Pooja in Manakula Vinayagar temple, dedicated to the god Ganesha...

Priests perform Gaja Pooja in Manakula Vinayagar temple, dedicated to the god Ganesha...

People on boat, wade through the flooded streets in Allahabad...

People on boat, wade through the flooded streets in Allahabad...

Submerged houses in flooded area of Hajipur, Bihar...

Submerged houses in flooded area of Hajipur, Bihar...

Villagers use tube boats to wade through flooded area of Hajipur, Bihar...

Villagers use tube boats to wade through flooded area of Hajipur, Bihar...

Tokyo governor Yuriko Koike, right, and Eduardo Paes, Mayor of Rio de Janeiro stand by IOC...

Tokyo governor Yuriko Koike, right, and Eduardo Paes, Mayor of Rio de Janeiro stand by IOC...

Pyrotechnics erupt during the closing ceremony in the Maracana stadium at the 2016 Summer...

Pyrotechnics erupt during the closing ceremony in the Maracana stadium at the 2016 Summer...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523