Live
- Power generation up at 140bn units
- India formally sends letter of intent to host 2036 Olympics: Sources
- Pollution spikes after Deepawali fireworks in capital
- Lokayukta police to summon CM for questioning in MUDA case tomorrow
- AP DGP Dwaraka Tirumala Rao addresses media, emphasises commitment of people
- Two Bengaluru residents lose ₹95 lakh to cyber fraudsters
- Lady Aghori alleges misbehavior by toll gate staff
- Karnataka prohibits all forms of manja after PETA plea
- Boy Dies in Tragic School Gate Collapse at ZP High School, Hayatnagar
- Jagan will be a sole person to remain in YSRCP
Banks recoup `8.6-trn bad loans in 8 yrs
Banks recoup `8.6-trn bad loans in 8 yrs
Govt, RBI measures help lenders recover stressed assets worth `8,60,369 cr in last 8 fiscals
Concrete steps taken by the government and RBI helped banks recover bad loans worth over Rs8.6 lakh crore in the last eight financial years, the government informed Parliament on Monday.
Minister of State (MoS) for Finance Bhagwat Karad in a written reply to the Lok Sabha said the occurrence of non-performing assets (NPAs) is normal, although an undesirable, corollary to the business of banking. Several factors -- including prevailing macroeconomic conditions, sectoral issues, global business environment, delayed recognition of stress by banks, aggressive lending during upturns, improper risk pricing and poor credit underwriting -- are attributed towards NPA build-up, he said. "Government and RBI (Reserve Bank of India) regularly issue guidelines and have taken several initiatives aimed at resolution of long-standing stressed assets on the books of banks as well as timely identification and recognition of stress immediately upon default and take corrective action for mitigation of the same," Karad said.
These measures complement the statutory provisions already available to lenders for recovery and resolution, including, the Recovery of Debts and Bankruptcy Act, 1993, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Insolvency & Bankruptcy Code, 2016 (IBC), the minister said.
"As a result of comprehensive steps taken by the government and RBI to check the cases of NPAs and bring them down, scheduled commercial banks (SCBs) recovered Rs8,60,369 crore over the last eight financial years (provisional data) from NPAs," Karad said.
