Parliament panel seeks committee to monitor NPAs

Parliament panel seeks committee to monitor NPAs

Move aims to tame rising bad assets

Parliament panel seeks committee to monitor NPAs

Concerned over the rising non-performing assets (NPAs) of public sector banks, which has weakened their ability to expand credit to deserving sectors, a parliamentary panel has asked the government to constitute a special NPA management cell to monitor the pace of recovery of loans among other things.

 The Parliamentary Standing Committee on Finance, headed by senior BJP leader Yashwant Sinha, has also asked the government to submit a report on the findings of the cell within three months. In the meantime, it has asked the government to publish the manes of wilful defaulters “appropriately”.

 “The committee will urge the government/ Reserve Bank of India to constitute a special NPA management cell at the highest level to review the write off, up-gradation and restructured advances and also to monitor the pace of recovery of NPAs. A report on results achieved thereof may be submitted to the committee within three months from presentation of this report,” it said.

 The report, tabled in Lok Sabha on Monday noted that the performance of individual PSBs in recovering NPAs as compared to write-offs was far from satisfactory and that the largest public sector lender, the State Bank of India, was able to improve its actual recovery by a paltry Rs 311 crore as against Rs 1,452 crore write-offs in 2012.

 In 2011, the gross NPAs of PSBs ballooned 24 per cent to Rs 74,664 crore from Rs 59,924 crore in 2010, which further increased by 36 per cent to Rs 1,17,262 crore in 2012.  The report said that the rising NPAs have eroded the balance sheets of PSBs. For example, the net profit of SBI declined to Rs 3,398.06 crore in December, 2012 from Rs 3,658.14 crore in September, 2012.

Complete probe

 “The committee is perturbed to find that during the years 2010-12, the number of accounts of gross NPAs above Rs one crore of PSBs increased by around 80 per cent to 7,295 accounts from 4,099 accounts,” the reports said.

 Major increases in these accounts were reported in SBI, Bank of India, IDBI Bank, Indian Overseas Bank, Punjab National Bank and Union Bank of India, it said.

 The panel also asked finance ministry to expeditiously complete the probe into the names revealed by HSBC on unaccounted money stashed abroad and submit the report to the panel within a month.

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