Reserve Bank of India Governor Shaktikanta Das had said that the government should bring a recapitalization plan for government and private banks so that these banks can withstand the pressure of rising NPAs.
- In March 2018, there was an NPA of Rs 6.35 lakh crore in the large industry and services sector.
- 38 people fled the country from January 2015 to December 2019.
- There was a CBI inquiry against these people. It involved these people in the financial crimes of banks.
Bank’s NPA has come down drastically in large industry and service sectors. The NPAs of these two sectors declined by 31 percent between March 2018 and June 2020. It is 4 lakh 36 thousand 492 crores till June 2020. In March 2018, this figure has been 6 lakh 35 thousand 971 crores. Minister of State for Finance Anurag Thakur gave this information in the Parliament session on Monday.
Several steps have been taken for recovery
Anurag Thakur said that the corporate house took many steps to recover the bad debts. For this, in the last five financial years, banks have recovered loans worth Rs 5 lakh 47 thousand 749 crores. In this, it has recovered one lakh 55 thousand 692 crores during 2018-19. Most of this amount came from the large industry and services sector.
Steps were taken for MSME
With the steps taken by the government for the Micro, Small, and Medium Enterprises (MSME) sector, the RBI has approved banks and NBFCs to restructure accounts with exposure up to Rs 25 crore. These accounts will not be NPA. Under this, public banks restructured 6.51 lakh MSME accounts by 31 March 2020.
6.44 lakh crore NPAs in five sectors
He said that there have been five categories whose total NPAs have been 6.44 lakh crores till March 2020. These include agriculture and allied activities, industry, education under retail loans, home loans, and other categories. However, data on business and personal loan categories have not collected. Of the above five categories, the highest NPA has been in the industrial sector. It has been 3.33 lakh crores.
1.77 lakh crore NPAs in other sectors
In other categories, the NPA stood at Rs 1.77 lakh crore. There is an NPA of Rs 1.11 lakh crore in agriculture and allied activities. Housing loan has an NPA of Rs 17 thousand 45 crores, while education has an NPA of Rs 5,626 crore. Thakur told that from January 2015 to December 2019, there were 38 people who ran out of the country. A CBI investigation was going on against these people, and it involved them in the financial crimes of the banks.
The Enforcement Directorate (ED) has issued a Red Corner Notice against 20 people. Out of this, it has made appeals to different countries to bring back 14 people.
Preparation to give 20 thousand crores to banks
Finance Minister Nirmala Sitharaman has sought Parliament’s approval to give 20 thousand crore rupees through recapitalization bonds to public sector banks. The government says that the government bank will get a big relief from this move. The Finance Minister said that for the Corona crisis, public banks are not getting the money back from the borrowers, for which the banks are under pressure. This is increasing their NPAs.
Relief will be given to deal with NPA
Nirmala Sitharaman said that step is being taken by the government to provide relief to the crisis-hit state-owned banks. Earlier in July, Reserve Bank of India Governor Shaktikanta Das had said that the government should bring a recapitalization plan for government and private banks so that these banks can withstand the pressure of rising NPAs.