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NPA crisis: 1,463 bad loan accounts owe PSU banks Rs 1 bn or more

Punjab National Bank topped the chart with 143 NPA accounts carrying over Rs 1 billion each

Press Trust of India  |  New Delhi 

Union Finance Minister Arun Jaitley is expected to address the two-day conclave at the State Bank of India (SBI) Academy in Gurugram

As many as 1,463 entities account for bad loans of Rs 1 billion or more in 21 public sector (PSBs), ministry data showed. In of (SBI) alone, 265 accounts had bad loans of more than Rs 1 billion each, totalling Rs 775.38 billion, at the end of the September quarter. Among the nationalised banks, National topped the chart with 143 non-performing asset (NPA) accounts carrying over Rs 1 billion each.

They collectively owed the Delhi-headquartered Rs 459.73 billion. PNB was followed by with maximum number of accounts with NPAs of more than Rs 1 billion. Among smaller PSU lenders, Union had 79 such accounts, Oriental 68 and 62, the ministry data revealed. Gross non-performing assets of state-owned stood at Rs 7.34 trillion by the end of second quarter this fiscal. The RBI has issued directions to certain for referring 12 accounts, with fund and non-fund based outstanding amount greater than Rs 50 billion and with 60 per cent or more classified as non-performing as of March 31, 2016, to initiate insolvency process under the Insolvency and Bankruptcy Code, 2016. Rising NPAs have curtailed the lending capacity of state-owned as they have make extra provisions for bad loans. In order to strengthen them, the government has come out with a Rs 2.12 trillion recapitalisation plan and has already taken nod of Parliament to pump in Rs 800 billion through recapitalisation bonds in the current fiscal ending March, 2018.

First Published: Mon, January 08 2018. 02:34 IST
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