Bank gross NPAs at Rs8.41 trillion in December 2017
New Delhi: The gross non-performing assets (NPAs) of all the banks in the country amounted to Rs840,958 crore in December, led by industry loans followed by services and agriculture sectors, government said on Friday.
The gross NPAs or bad loans of scheduled commercial banks as on 31 December 2017 due to loans to industry were at Rs609,222 crore, accounting for 20.41% of the gross advances. That was followed by Rs110,520 crore (5.77%) dues from services sector; Rs69,600 crore (6.53%) from agriculture and allied activities; Rs14,986 crore from other non-food credit and Rs36,630 crore (2.01%) from retail loans, minister of state for finance Shiv Pratap Shukla said in a written reply in Lok Sabha.
The highest amount of gross NPAs was for country’s largest lender State Bank of India (SBI) at Rs201,560 crore. Among others, Punjab National Bank (PNB) was at Rs55,200 crore; IDBI Bank Rs44,542 crore; Bank of India Rs43,474 crore; Bank of Baroda Rs41,649 crore; Union Bank of India Rs38,047 crore; Canara Bank Rs37,794 crore and ICICI Bank Rs33,849 crore.
Indian Overseas Bank bank had gross NPAs of Rs31,724 crore; Central Bank of India Rs32,491 crore; UCO Bank Rs24,308 crore; Allahabad Bank Rs23,120 crore; Andhra Bank Rs21,599 crore and Corporation Bank Rs21,818 crore.
Shukla said there are as many as 8,457 cases pending in the National Company Law Tribunal (NCLT) and 264 in the National Company Law Appellate Tribunal as on 31 December 2017, through which banks seek to recover their dues. In reply to a question on write off by banks, of which SBI has the highest amount, the minister said that the country’s largest lender had written-off Rs20,339 crore (including through compromise) in 2016-17.
“This is 24.9% of the amount written off by all PSBs in 2016-17, which is marginally lower than SBI’s share in the total business of PSBs (26.3%),” he added. SBI has apprised that it has two-fold strategy for controlling fresh slippages and resolution of existing NPAs.
Further, government has recently announced public sector banks (PSBs) reforms agenda for responsive and responsible banking, which encapsulates a synergistic approach for ensuring prudential and clean lending, better customer service, enhanced credit availability, focus on micro, small and medium enterprises and better governance, he said.
Also, Reserve Bank of India (RBI) has issued a Prompt Corrective Action (PCA) framework to maintain sound financial health of banks. RBI has placed eleven PSBs—Dena Bank, Central Bank of India, Bank of Maharashtra, UCO Bank, IDBI Bank, Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Bank of India, Allahabad Bank and United Bank of India—under the PCA framework.
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