Press Esc to close

NPAs of public sector banks on the rise

NEW DELHI, Nov 29, 2012, DHNS 22:41 IST

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

More from this section
Most trending stories
Photo Gallery
Bronze medalist in the women's 4 x 5km relay cross-country skiing the team from Russia...

Bronze medalist in the women's 4 x 5km relay cross-country skiing the team from Russia...

Canada's Prime Minister Justin Trudeau with his son Hadrien, 3, feeds an elephant during...

Canada's Prime Minister Justin Trudeau with his son Hadrien, 3, feeds an elephant during...

Bollywood actress and dancer Smilie Suri during the Pole Dance practice...

Bollywood actress and dancer Smilie Suri during the Pole Dance practice...

A child plays with soap bubbles at the Surajkund Mela in...

A child plays with soap bubbles at the Surajkund Mela in...

Potters sell their items at the Surajkund Mela in...

Potters sell their items at the Surajkund Mela in...

People in costumes join a parade to mark Chinese new year, the Year of the Dog...

People in costumes join a parade to mark Chinese new year, the Year of the Dog...

Protesters stand near billboards placed by the pressure group Occupy Justice...

Protesters stand near billboards placed by the pressure group Occupy Justice...

Actress Tamannaah Bhatia during a promotional event...

Actress Tamannaah Bhatia during a promotional event...

Girls take selfie near a classic car at the 8th edition of the 21 Gun Salute...

Girls take selfie near a classic car at the 8th edition of the 21 Gun Salute...

A man feeds langurs at Khandagiri in...

A man feeds langurs at Khandagiri in...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.