PSBs recoup Rs. 5.49 lakh cr in 7 fiscal years: Govt

Keeping Tabs On NPAs

- As a result of transparent recognition of stressed assets, gross NPAs rose from Rs 2,79,016 cr (gross NPA ratio of 4.97%) as on March 31, 2015, to Rs 8,95,601 cr (gross NPA ratio of 14.58%) as on March 31, 2018

- After reforms, NPAs declined to Rs 6,16,616 cr (gross NPA ratio of 9.11%) as on March 31, 2021

New Delhi: The government has taken comprehensive steps to reduce NPAs and to effect recovery, enabling public-sector banks (PSBs) to recover more than Rs5.49 lakh crore over the last seven fiscal years, the Lok Sabha was informed on Monday.

In a written reply, Minister of State for Finance Bhagwat Karad said that with regard to the details of the recovery rate of non-performing assets (NPAs), the RBI has informed that it has not formally defined 'recovery rate' in the context of NPAs in the banking industry. "Comprehensive steps have been taken by the Government to reduce NPAs and to effect recovery, which enabled PSBs to recover Rs5,49,327 crore over the last seven financial years," he said.

However, as per RBI data, recovery made by PSBs during the financial year as a percentage of gross NPA as at beginning of the financial year (FY) has improved from 11.33 per cent in 2017-18, to 13.52 per cent in 2018-19, and to 14.69 per cent in 2019-20.

"In FY2020-21, despite widespread impact of the Covid-19 pandemic on the economy and its cascading effect on the actions in respect of recovery measures, the recovery during the financial year as a percentage of gross NPA as on beginning of the financial year was still at 12.28 per cent," the minister said.

The minister also informed that primarily as a result of transparent recognition of stressed assets, gross NPAs of PSBs rose from Rs 2,79,016 crore (gross NPA ratio of 4.97 per cent) as on March 31, 2015, to Rs 8,95,601 crore (gross NPA ratio of 14.58 per cent) as on March 31, 2018.