PSU banks waive off Rs 1.06 lakh cr in 5 years

PSU banks waive off Rs 1.06 lakh cr in 5 years

Public sector banks have written off loans worth Rs 1,06,170 crore in the last 5 years, Parliament was informed on Tauesday.

“The RBI data reporting system does not collate data on the number of account holder having more than Rs 1 crore, whose loans were written off,” Minister of State for Finance Jayant Sinha said in written reply to the Rajya Sabha.

The amount of bad loans written off or restructured by the PSU banks has more than doubled in the last three years ending March 2014 to Rs 42,447 crore.

The rise in bad loans is being attributed to slowdown in the economy which slipped to below 5 per cent in the two consecutive financial years -- 2012-13 and 2013-14.

The loans written off/compromised by PSU banks soared from Rs 20,752 crore in 2011-12 to Rs 32,992 crore in 2012-13 and further to Rs 42,447 crore in 2013-14, as per RBI data. In a separate reply, Sinha said, “a total of 1,600 wilful defaulters (non-suit filed accounts) of Rs 25 lakh and above as on March 31, 2014, have been declared by the banks.”

A robust mechanism for early detection of signs of distress, prompt restructuring in the case of all viable accounts, taking to recourse to legal mechanisms like Lok Adalats etc are methods of recovery of loans, he said.

RBI has issued instructions to banks to review slippages in asset classification in the borrower accounts with outstanding Rs 5 crore and above by the board of directors of the bank and review NPA accounts which have registered recoveries of Rs 1 crore and above, he said. The government has advised public sector banks to constitute a board level committee for monitoring of NPAs and recovery, he added.

Narendra Modi or Rahul Gandhi? Who will win the battle royale of the Lok Sabha Elections 2019


Get real-time news updates, views and analysis on Lok Sabha Elections 2019 on Deccanherald.com/news/lok-sabha-elections-2019 


Like us on Facebook or follow us on Twitter and Instagram with #DHPoliticalTheatre for live updates on the Indian general elections 2019.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry