Saturday 19 April 2014
News updated at 8:24 PM IST
Weather
Max: 35.4°C
Min : 22.5°C
In Bangalore
Sunny day

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
Force India driver Nico Hulkenberg drives in rain during the qualifying session of Chinese...

Force India driver Nico Hulkenberg drives in rain during the qualifying session of Chinese...

Indian Christian devotees enact the crucifixion of Jesus Christ to mark Good Friday...

Indian Christian devotees enact the crucifixion of Jesus Christ to mark Good Friday...

India activists from People for the Ethical Treatment of Animals dressed as rabbits hold...

India activists from People for the Ethical Treatment of Animals dressed as rabbits hold...

Wheat sacks getting spoilt as they have been put in open after heavy rain at Hodal anajmandi...

Wheat sacks getting spoilt as they have been put in open after heavy rain at Hodal anajmandi...

Bollywood actor Vivek Oberoi at a special screening of 'Amazing Spiderman 2' ...

Bollywood actor Vivek Oberoi at a special screening of 'Amazing Spiderman 2' ...

Runners, wearing jackets from the 2013 Boston Marathon, add their message to a cloth banner after...

Runners, wearing jackets from the 2013 Boston Marathon, add their message to a cloth banner after...

Yesenia Del Carmen 8, carries a cross reading 'No to the Deportations,' 'as she and her...

Yesenia Del Carmen 8, carries a cross reading 'No to the Deportations,' 'as she and her...

South Sudanese fleeing an attack on the South Sudanese town of Rank, rest during arrival at a...

South Sudanese fleeing an attack on the South Sudanese town of Rank, rest during arrival at a...

A sand sculpture of Simon Zelotes preaching the gospel is seen during Holy Week celebrations in...

A sand sculpture of Simon Zelotes preaching the gospel is seen during Holy Week celebrations in...

Rescue workers operate near floats where the capsized passenger ship 'Sewol' sank, during the...

Rescue workers operate near floats where the capsized passenger ship 'Sewol' sank, during the...

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