 "Tracking recovery rate")
In recent years, the rate of recovery (of the written-off amount) has declined due to exponential growth of non-performing assets (NPAs). The percentage recovered against write-offs done by public sector banks (PSBs) declined from 24.5% in FY13 to 20.59% in FY14 and further to 15.23% in FY15.
The gross NPAs of PSBs have more than doubled to Rs 3,61,731 crore (7.31%) in December 2015 from Rs 1,55,890 crore (3.84%) in March 2013. Rise in bad loans is caused by factors including slowdown in recovery in the global economy and continuing uncertainty in global markets.
This has led to lower exports of products like textiles, engineering goods, leather and gems, etc. The volatility in prices of raw material and the shortage in availability of power to some sectors has also been factors behind the rise in bad loans. A look at the financials
The gross NPAs of PSBs have more than doubled to Rs 3,61,731 crore (7.31%) in December 2015 from Rs 1,55,890 crore (3.84%) in March 2013. Rise in bad loans is caused by factors including slowdown in recovery in the global economy and continuing uncertainty in global markets.
This has led to lower exports of products like textiles, engineering goods, leather and gems, etc. The volatility in prices of raw material and the shortage in availability of power to some sectors has also been factors behind the rise in bad loans. A look at the financials
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