Gross NPAs of PSBs at 9.83% in FY16; rises to 11.82% by September 2016

Gross NPAs of private sector banks were just 2.70 per cent of gross advances during the FY16

Bad loans of public sector banks stood at 9.83 per cent of gross advances in the previous financial year (FY), while that of private sector banks were restricted to 2.70 per cent, the government said on Friday.

For FY16, public sector banks had gross advances of Rs 51,04,915 crore, of which Rs 5,02,068 crore (9.83 per cent) was categorised as gross non-performing assets (GNPA), Minister of State for Finance Santosh Gangwar informed the Lok Sabha in a written reply.

Gross NPAs of private sector banks were Rs 48,380 crore, meaning just 2.70 per cent of gross advances of Rs 17,91,681 crore during the FY16.

Till September in the current FY, public-owned banks' gross NPAs rose further to Rs 5,89,502 crore, with a ratio of 11.82 per cent. The gross NPAs, when combined with restructured advances, rose further to 15.88 per cent as on September 30, 2016, the minister added.

Gangwar said the government has taken sector-specific measures — infrastructure, power, road, textile, steel — where the incidence of NPA is high.

The Insolvency and Bankruptcy Code (IBC) has been enacted and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans, he said.

In a separate reply, Gangwar said government introduced Indradhanush Plan in 2015 for revamp of public sector banks.

The plan has agenda related to an appointment of the Bank Board Bureau, capitalisation, de-stressing of PSBs, empowerment, a framework of accountability, governance reforms under it, he said.

At the end of March 2016, PSBs, write-offs were to the tune of Rs 59,547 crore.

For the current FY, the write-offs stood at Rs 25,825 crore till September-end 2016, the minister said further.