Worry for Modi: State-run banks’ bad loans surge by Rs 1 lakh cr in April-December, SBI tops with Rs 81,442 cr as NPAs

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New Delhi | Updated: March 15, 2017 7:37:42 PM

Bad loans of public sector banks rose by over Rs 1 lakh crore during April-December period of 2016-17, the bulk of which came from power, steel, road infrastructure and textiles sectors.

Bad loans of public sector banks rose by over Rs 1 lakh crore during April-December period of 2016-17, the bulk of which came from power, steel, road infrastructure and textiles sectors. (Reuters)

Bad loans of public sector banks rose by over Rs 1 lakh crore during April-December period of 2016-17, the bulk of which came from power, steel, road infrastructure and textiles sectors. Public sector banks’ gross bad loans stood at Rs 5,02,068 crore at the end of 2015-16.Bad loans rose by over Rs 1 lakh crore in the first nine months of current fiscal to Rs 6,06,911 crore by December 31, 2016, Minister of State for Finance Santosh Gangwar said in a written reply to the Rajya Sabha today. The gross non-performing assets (NPAs) were Rs 2,67,065 crore at the end of 2014-15.

For private sector banks, gross NPAs grew to Rs 70,321 crore by December 31, 2016, from Rs 48,380 crore as on March 31, 2016. Their gross NPAs were Rs 31,576 crore at the end of fiscal year 2014-15. “The Government has taken sector-specific measures (power, road, infrastructure, textiles, steel etc) where incidence of NPA is high,” Gangwar said.

The Insolvency and Bankruptcy Code (IBC) has been enacted, he said. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and the Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans.

Also, six new Debt Recovery Tribunals (DRTs) have been established for improving recovery. Country’s largest lender SBI had corporate lending of over Rs 6.36 lakh crore as on December 31, 2016. Of this 8.16 per cent (Rs 81,442 crore) turned non-performing, Gangwar informed the house in a separate reply.

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Punjab National Bank’s corporate loans were Rs 2.05 lakh crore, of which 16.38 per cent (Rs 41,467 crore) was NPA while IDBI Bank’s corporate loans were Rs 1.31 lakh crore of which Rs 25,724 crore (15.44 per cent) turned bad.
Canara Bank’s corporate loans were at over Rs 1.47 lakh crore, Bank of India’s at Rs 1.76 lakh crore, Bank of Baroda’s at Rs 1.39 lakh crore and Union Bank of India’s at Rs 1.26 lakh crore.

The respective NPA ratios were: 11.84 per cent (Rs 23,018 crore); 16.79 per cent (Rs 36,003 crore); 12.85 per cent (Rs 23,122 crore) and Rs 12.70 per cent (Rs 20,293 crore). On a query whether government remitted/rescheduled loans of few big debtors, he said: “No corporate loan has been waived or rescheduled by government. The banks take action based on RBI guidelines and board-approved policy.” On naming borrowers who owe money, Gangwar said RBI Act, Banking Laws do not allow so as banks/financial institutions need to maintain secrecy.

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