​​​
  1. NPA in India: PSBs failing to recover bad loans, UCO Bank tops chart; check full list

NPA in India: PSBs failing to recover bad loans, UCO Bank tops chart; check full list

In a major headache for Public Sector Banks (PSBs) in the country, the recovery rate of non performing assets (NPAs), which were written off, has been declining. It has been learnt that 90 per cent of bad loans could not be recovered during 2014-15 to 2017-18

By: | New Delhi | Updated: April 17, 2018 8:03 AM
npa of indian banks NPA in India: The report was released by Reserve Bank of India

NPA in India: In a major headache for Public Sector Banks (PSBs) in the country, the recovery rate of non performing assets (NPAs), which were written off, has been declining. It has been learnt that 90 per cent of bad loans could not be recovered during 2014-15 to 2017-18, according to the Reserve Bank of India report quoted by The Indian Express. The worst performer is the UCO Bank, which had written off Rs 6,087 crore in the last four fiscals, failed to recover a single rupee.

Other state-owned banks like Indian Overseas Bank had written off Rs 10,470 crore of NPAs and managed to recover Rs 10 crore. Allahabad Bank has so far recovered just Rs 257 crore out of a total of Rs 9,533 crore of bad loans. The IDBI Bank has recovered a meagre Rs 479 crore out of a total of Rs 16,568 crore worth of NPAs written-off. The central government is planning to privatise the IDBI bank.

Courtesy IE

Punjab National Bank, which is in the news over diamond czar Nirav Modi case, had written off Rs 27,814 crore but managed recover Rs 6,270 crore with a relatively better percentage of 22.54. State Bank of India had written off Rs 1,02, 587 crore of bad loans. It had recovered Rs 10, 396 crore.

The report shows that in the last four fiscal years — 2014-15, 2015-16, 2016-17 and 2017-18 till December 31 — all 21 public sector banks in aggregate could recover only Rs 29,343 crore out of Rs 2.72 lakh crore of bad loans that were written off by the PSBs, a recovery rate of 10.77 per cent. The growing NPAs and increasing amount of write-offs generally put pressure on the exchequer to keep infusing capital in the banks to keep them afloat. Earlier in January, the central government had infused the lion’s share of capital of Rs 52,311 crore to 11 weak banks to maintain their minimum regulatory capital requirement. At the same time the Centre had given Rs 35,828 crore to nine strong banks were given.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. Murli Venkat Iyer
    Apr 17, 2018 at 3:58 pm
    It's high time that all our PSBs start a big campaign to recover all bad loans in a planned manner without much litigation. Why can't there be targets for recovery of bad loans like disbur t of loans to priority sectors. It's all the public money which has been wasted by these badly managed PSBs.
    Reply
    1. Amiya R Chatterjee
      Apr 17, 2018 at 3:39 pm
      you have just stated the facts about NPA, but doesn't dare to investigate why Banks unable to revover NPA? Is it administartive fault or for political pressure,,,who is responsible for those huge losses,,, Its public money. We must know who are bene ed,,,who are guilty?
      Reply
      1. ANISH BHATTACHARYA
        Apr 17, 2018 at 3:14 pm
        Business man has done enough frauds and continue to do so with the employees as well. Now it's our for the middle class people to carry out fraud with banks hurrahhhhh
        Reply
        1. Surajitkumar Saha
          Apr 17, 2018 at 2:37 pm
          Huge loans were sanctioned to preferred industrialists knowing fully well that those will not be repayed. Punish those board members of the banks who are involved in the conspiracy and attach the personal assets of those industrialists and send them all behind the bars.
          Reply
          1. Deepak Bhandarkar
            Apr 17, 2018 at 11:57 am
            All NPAs are not frauds. Some of them may be genuine for the reason of misjudgement of borrower . Such borrowers cannot be judged as " willful defaulters " The term itself indicates that wilful defaulters have means matching NPA but have no will to repay .One must be very strict not only with such willful defaulters , but ALSO WITH THOSE WHO WERE RESPONSIBLE BUT NEGLIGENT IN SANCTIONING , MONITORING , AUDITING , and REPORTING errors, in handling such account from the scratch. Recovery from their ry ,terminal benefits ,perks etc may not be sufficient but is ESSENTIAL to instil discipline ,honesty in such people in their work .Depositors and taxpayers money must not be used to adjust these NPA , allowing such people to repeat their show afresh .Such an effort will provide a reason for opposition against the ruling party and will definitely DENT the strength( both moral and numerical) of ruling party .
            Reply
            1. Deepak Jha
              Apr 17, 2018 at 10:40 am
              Please check ur figures before u post a news on the psb banks. Your figure are totally wrong about UCO Bank.
              Reply
              1. Load More Comments

              Go to Top