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Bad loans of PSBs fall to Rs 8,64,433 crore in first nine months of FY19
Feb-11-2019

In a positive surprise, bad loans of public sector banks (PSBs) fell by Rs 31,168 crore to Rs 8,64,433 crore in the first nine months of the current fiscal as against Rs 8,95,601 crore  to end of March 2018. The Minister of State for Finance Shiv Pratap Shukla has noted that bad loans fell to Rs 8,75,619 crore as on June 2018 and further to Rs 8,64,433 crore in December 2018 (as per provisional data), further underlying  that presently the government is not considering any proposal for privatisation of PSBs.

Shukla also said that fall in Non Performing Assets (NPAs), on the back of the government's 4Rs strategy of recognition, resolution, recapitalisation and reforms. Besides, he said that Asset Quality Review (AQR) initiated in 2015 for clean and fully provisioned bank balance-sheets revealed high incidence of NPAs.

The Minister of State for Finance said that primarily as a result of transparent recognition of stressed assets as NPAs, gross NPAs of PSBs as per RBI data on global operations, increased from Rs 2,27,264 crore as on March 31, 2014, to Rs 2,79,016 crore on March 31, 2015, Rs 5,39,968 crore on March 31, 2016 and Rs 6,84,732 crore as on March 31, 2017. However, with various steps taken by the government including the initiation of transparent recognition in 2015-16 till December 2018, PSBs have successfully recovered an amount of Rs 3,33,491 crore.


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