Govt steps drastically reduce banks NPAs

Govt steps drastically reduce banks NPAs

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New Delhi, Dec. 30:
Various initiatives taken by the government have yielded results, with the bad loans of public sector banks declining by over Rs23,000 crore from a peak of Rs 9.62 lakh crore in March, 2018, said a senior finance ministry official.
At the same time, public sector banks (PSBs) have also made a record recovery of Rs60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year.
“Gross non-performing assets (NPAs) of PSBs have started declining after peaking in March 2018, registering a decline of Rs 23,860 crore in the first half of the current financial year,” Financial Service Secretary Rajiv Kumar said.
According to the latest Finance Ministry data, non-NPA accounts overdue by 31 to 90 days (Special Mention Accounts 1 & 2) of PSBs have declined by 61% over five successive quarters — from Rs 2.25 lakh crore as of June 2017 to Rs 0.87 lakh crore in September 2018. Risk has reduced
“This has substantially pared down credit at risk,” he said. On various initiatives, he said that with the recognition of restructured standard assets as NPAs initiated with Asset Quality Review in 2015, and with discontinuation of restructuring schemes, the recognition exercise is almost over.

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