PSBs NPAs down to ₹7.9 trillion at the end of March 20191 min read . Updated: 30 Aug 2019, 04:45 PM IST
- The gross NPAs was ₹8.65 trillion at the end of December 2018
- The loan recovery in FY19 also improved to ₹1,21,076 crore
New Delhi: The performance of India’s public sector banks has improved with the improvement in asset quality helping in bringing the non performing assets (NPAs) to ₹7.9 trillion at the end of March 2019, said finance minister Nirmala Sitharaman on Friday.
In comparison, the gross NPAs was ₹8.65 trillion at the end of December 2018 and ₹8.69 trillion at the end of September 2018.
The loan recovery in FY19 also improved to ₹1,21,076 crore as compared to ₹77,653 crore in FY18, Sitharaman said.
On last Friday, finance minister Nirmala Sitharaman also announced a slew of measures to stoke demand, including a rejig of its spending programme by front-loading it, addressing supply-side bottlenecks and easing bank credit rules, even as she promised to end “tax terrorism" that has left India Inc. jittery.
Sitharman said that 14 of 18 public sector banks are in profit with four non banking financial companies (non-banking financial companies) for making the path clear for the Indian economy to reach the $5 trillion target.
These successive press confernces by the finance minister is an acknowledgment by the government that the Indian economy has entered its worst phase since the 2008 global financial crisis and, hence, needs urgent attention.
The Indian economy had decelerated to a five-year low of 5.8% in the March quarter, while high-frequency indicators, including automobile sales, have signalled a consumption slump.
Of the $2.6 trillion size of India’s GDP, credit availability accounts for 72% or $1.9 trillion.
“The check box related solutions have all come through," Sitharaman said.