Press Information Bureau

Government of India

Ministry of Finance

23-August-2012 16:58 IST

Although the Gross non-Performing Assets of the Public Sector Banks (PSBs) as on March 2012 amounts to Rs. 112489 crore, all PSBs have reported profits for the financial year 2011-12.

Banks are required to monitor NPAs and take steps to bring them down through recovery/other channels. RBI also monitors the NPA levels in banks. This aspect is reviewed during Annual Financial Inspections of banks and monitored on an ongoing basis through regulatory returns submitted by banks and periodical meetings with banks. The channels of recovery available to banks include recourse to Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Debt Recovery Tribunals, Lok Adalats etc.

The Government has advised PSBs to take a number of new initiatives to increase the pace of recovery and manage NPAs, which include appointment of Nodal officers for recovery to conduct special drive for recovery of loss assets, to put in place early warning systems, to replace system of post dated cheques with Electronic Clearance System (ECS) and to proactively pursue the loan issues with State Government.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

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DSM/RS/bs

Non-performing asset recovery measures urged including SARFAESI, DRT, Lok Adalats, nodal officers, ECS and early warnings. Public sector banks must monitor and reduce Non-Performing Assets through regulatory oversight and recovery channels including the SARFAESI Act, Debt Recovery Tribunals and Lok Adalats. The Government advised appointing nodal recovery officers, conducting special recovery drives, implementing early warning systems, replacing post-dated cheques with ECS, and coordinating with state governments to accelerate recoveries.