Banks’ NPAs down Rs 10.2 lakh crore on measures by govt, RBI

Steps taken by the government and the Reserve Bank of India have helped banks recover and reduce the non-performing assets by nearly Rs 10. 2 lakh crore during the last nine years, the finance ministry has told Parliament.

Replying to a question on loan recovery, junior minister for finance Bhagwat Karad told the Lok Sabha that moves such as the Insolvency & Bankruptcy Code, amendments to the Sarfaesi and establishment of the National Asset Reconstruction Company, are among a series of steps taken by the government and the regulator, resulting in reduction in NPAs. While banks have initiated steps to recover dues, reporting and NPA recognition norms have also been strengthened, he said.
The government has repeatedly said that it has resolved the problems of the banking sector, which is now ready to fund new projects and help boost economic activity. The minister also said that in case of corporate loans of over Rs 1,000 crore extended by scheduled commercial banks (SCBs), the NPAs added up to Rs 1,03,975 crore.