Press Esc to close
Saturday 04 July 2015
News updated at 3:34 PM IST
Weather
Max: 33°C
Min : 21°C
In Bengaluru
Rain lightly

NPAs of public sector banks on the rise

NEW DELHI, Nov 29, 2012, DHNS

SBIís 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
India and Bangladesh basketball players in action during the 4th South Asian Basketball...

India and Bangladesh basketball players in action during the 4th South Asian Basketball...

A farmer works in a paddy field at Reba Maheswar village, 56 kilometers (35 miles) east of Gauhati..

A farmer works in a paddy field at Reba Maheswar village, 56 kilometers (35 miles) east of Gauhati..

A tiger attacking spotted deers at Nagarahole National Park in Mysore district on Friday...

A tiger attacking spotted deers at Nagarahole National Park in Mysore district on Friday...

Monsoon rain clouds hover over the backdrop of Kitthur Rani Chennamma statue near Town Hall...

Monsoon rain clouds hover over the backdrop of Kitthur Rani Chennamma statue near Town Hall...

Protesters run for cover after police fired teargas shell to disperse them during a clash...

Protesters run for cover after police fired teargas shell to disperse them during a clash...

A gust of wind bends the umbrella of a street vendor crossing the road during a heavy downpour...

A gust of wind bends the umbrella of a street vendor crossing the road during a heavy downpour...

Indian Muslims offer prayers during Ramadan at the Vasi Ullah mosque in Allahabad...

Indian Muslims offer prayers during Ramadan at the Vasi Ullah mosque in Allahabad...

Buddhist monks from Thailand offer special prayers for making a new Temple...

Buddhist monks from Thailand offer special prayers for making a new Temple...

A worker drying up vermicelli at a factory in Allahabad on Friday during Ramadan...

A worker drying up vermicelli at a factory in Allahabad on Friday during Ramadan...

Bollywood actors Amit Sadh, Aditi Rao Hydari and Arshad Warsi at the launch of a new multiplex...

Bollywood actors Amit Sadh, Aditi Rao Hydari and Arshad Warsi at the launch of a new multiplex...

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