Bank NPAs at R1.27 lakh crore

Written by Press Trust of India | New Delhi | Updated: Mar 31 2012, 06:25am hrs
The non-performing assets (NPAs) of banks have risen to R1.27 lakh crore till December last year, Parliament was informed today. Bank's bad loans stood at R94,084 crore in 2010-11, R81,813 crore in 2009-10 and R68,220 crore in 2008-09, finance minister Pranab Mukherjee told the Lok Sabha in a reply. Main reasons for increase in NPAs of banks are due to switch over to System-Based Identification on NPAs, increase in interest rates and lower economic growth during 2011 impacting the repayment capacity of borrowers, especially small and medium enterprises, Mukherjee said. In a separate written reply to the house, minister of state for finance Namo Narain Meena said a total of R2,481 crore in 1.12 crore accounts was lying as unclaimed deposits with the banks as of December, 2011. However, RBI has directed all banks to be more pro-active in finding whereabouts of the account holders who have remained inoperative over the years, he added.