Putting onus for the rising bad loan problem on the previous government, Finance Minister Piyush Goyal on Thursday said that the reckless lending initiated under the last UPA regime resulted in banking sector getting financially stressed.
Putting onus for the rising bad loan problem on the previous government, Finance Minister Piyush Goyal on Thursday said that the reckless lending initiated under the last UPA regime resulted in banking sector getting financially stressed. Piyush Goyal, who is holding the additional charge of Finance Minister in absence of Arun Jaitley, is today attending the bankers meet at Department of Financial Services, where he will take stock of banks under Prompt Corrective Action (PCA). “I come to meet bankers under guidance of Arun Jaitley,” he told CNBC TV18.
Reserve Bank of India (RBI) is diligently supervising the entire problem of bad loans in order to ensure orderly growth of banking industry, Piyush Goyal told CNBC TV18. Even though country’s banking sector is under immense stress, the government is trying to get it back on its feet soon, he added. The accumulated NPAs in the Indian banking system have crossed the staggering level of Rs 9 lakh crore.
As on December 31, 2017, gross NPAs of scheduled commercial banks resulting due to loans to the industry were recorded at Rs 6,09,222 crore. These bad loans account for 20.41 percent of the gross advances. The services sector account for 5.77 percent or Rs 1,10,520 crore, and agriculture and allied sector 6.53 percent or Rs 69,600 crore. Rs 14,986 crore come from other non-food credit and Rs 36,630 crore (2.01 percent) from retail loans.
SBI, the country’s largest lender, recorded the highest amount of gross NPAs at Rs 2,01,560 crore. Punjab National Bank (PNB) was at Rs 55,200 crore, IDBI Bank Rs 44,542 crore, Bank of India Rs 43,474 crore, Bank of Baroda Rs 41,649 crore, Union Bank of India Rs 38,047 crore, Canara Bank Rs 37,794 crore and ICICI Bank Rs 33,849 crore.
Indian Overseas Bank bank had gross NPAs of Rs 31,724 crore, Central Bank of India Rs 32,491 crore, UCO Bank Rs 24,308 crore, Allahabad Bank Rs 23,120 crore, Andhra Bank Rs 21,599 crore and Corporation Bank Rs 21,818 crore.