Through various measures by the government and the Reserve Bank of India, commercial banks have recovered non-performing asset (NPA) loans, or bad loans, worth Rs 10.16 lakh crore. This information was revealed by the Union Minister of State for Finance Bhagwat Karat to the Lok Sabha on July 24.
“Comprehensive measures have been taken by the Government and RBI to recover and to reduce NPAs, including those pertaining to corporate companies, which has enabled an aggregate recovery of Rs. 10.16 lakh crore by SCBs during the last nine financial years till 2022-23,” Karad said in a written reply.
The Finance Ministry reply stated that NPA accounts of Rs 1,000 crore or more totalled Rs 1.04 lakh crore as on March 31st, 2023.
Karad said that the measures taken by the Finance Ministry and the RBI to reduce NPAs include the Insolvency and Bankruptcy Code, debarring wilful defaulters from the resolution process, the amendments to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and the setting up of National Asset Reconstruction Company.
Karad said that state-owned banks have also created stressed asset management verticals for stringent recovery of loans, the functioning of the banks has been overhauled, wilful defaulters have been debarred from accessing capital markets, and from providing additional facilities by the banks
The RBI also brought in the Prudential Framework for Resolution of Stressed Assets, a framework for early recognition, reporting and time bound resolution of NPAs, he said.
Published 26 July 2023, 15:32 IST