Banking NPAs drop to Rs 8.34 lakh Cr in March 2021: ministers

The banks’ non-performing assets (NPA) or bad loans were reduced by 61.180 billion rupees to 8.34 billion rupees lakh at the end of March 31, 2021 due to various government measures, Minister of Finance Bhagwat K Karad said on Monday.

Registered Commercial Banks (SCBs) had NPA worth Rs 8.96 lakh crore on their balance sheet at the end of March 2020.
“Mainly due to the transparent recognition of assets under stress as NPA, gross NPA of SCB According to RBI data on global operations, increased from Rs 3.23.464 billion on March 31, 2015 to Rs 10.36.187 billion on March 31, 2015. March 2018, and as a result of the government’s strategy of recognition, dissolution, recapitalisation and reforms, from So they rose to Rs 9.33.779 crore on 3/31/2019, to Rs 8.96.082 crore on 3/31/2020 and to 3/31/2021 Rs 8.34.902 crore (preliminary data) decreased, “he said.
Karad said in a written response to the Lok Sabha that the COVID19 regulatory package announced by the RBI will allow credit institutions to place a six-month moratorium on the payment of all instalments that are due between March 1 and August 31, 2020 on all term loans and defer interest repayment for the same period in respect of working capital lines.
On another question, Karad replied, Gross NP As of the Public Banks (PSB) hit a high of Rs.8.95.601 billion on March 31, 2018.

As a result of the government’s recognition strategy, dissolution, recapitalisation and reforms, the NPAs are since then at Rs 7,39,541 crore on March 31, 2019, Rs 6,78,317 crore on March 31, 2020 and then to Rs 6,16,616 crore on Decreased March 31, 2021 (preliminary data).
“net NPAs have shown a similar trend, initially from Rs 1.24.095 crore on 3/31/2014 to Rs 2.14.549 crore on 3/31/2015, Rs 3.24.372 crore on 3/31/2016, Rs 3.82,087 crore on 3/31/2015 .2017 and reached Rs 4.54,221 on 3/31/2018 and then declined to Rs 2,84,689 crore on 3/31/2019, Rs 2,31,551 crore on 3/31/2020 and beyond that Rs 1.97,360 crore on 3/31/2019. 2021 ( preliminary data), “he said.

During that period, he said, the PSBs continued to report total operating profit of Rs 1.37.151 billion, Rs 1.58.994 billion, Rs 1.49.819 crore, Rs 1.74.640 crore for the fiscal year. 201516, 201617, 201718, 201819 and 201920.
“However, mainly due to the constantly aging provision for NPAs, they formed an aggregate provision for NPAs and other contingencies of Rs 1.55.226 crore, Rs 1.70.371 crore, Rs 2.40.956 crore, Rs 2.17.481 crore and Rs 2.00.404 crore respectively during these years, resulting in aggregate net losses of 17.993 billion rupees, 11.389 billion rupees, 85.370 billion rupees, 66.636 billion rupees and 25.941 billion rupees respectively and returns thereafter returned to profitability with total net profits of Rs 31,820 billion in FY 202021. he said.

At the same time, extensive measures have been taken to monitor and effect the confiscation of the NPAs, so that the PSBs for the past six Fiscal Years 5.01. She added 479 billion rupees back.

To another question, Karad replied that the total projected credit growth of commercial banks (SCB) for 2020 is despite the decline in GDP (7.3P percent) remained positive due to the COVID19 pandemic21. The SCB’s
gross loans and advances outstanding increased from 109.19 lakh crore as of March 31, 2020 to 113.99 lakh crore as of March 31, 2021, it said.

In addition, according to RBI data on loans to agriculture and related activities, micro, small and medium-sized businesses, housing and vehicles have annual growth of 12.3%, 8.5%, 9, 1% and 9.5%, respectively. recorded. . in the course of the year.

The ability of PSBs to further increase lending is illustrated by the ratio of equity to risk-weighted assets, which was 14.04% as of March 31, 2021, compared to the regulatory requirement of 10.875%.

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