Press Information Bureau

Government of India

Ministry of Finance

06-September-2012 17:29 IST

NPA of Nationalized Banks

The Gross Non-Performing Assets (GNPAs) of Nationalized Banks as on June 2012 were Rs.73,038 crore which amount to 2.94% of Gross Advances.  Data Reporting System of Reserve Bank of India (RBI) does not generate State wise details.

Banks are required to monitor their NPAs and take steps to bring them down through recovery/other channels.  RBI also monitors the NPA levels in banks.  The 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 Public Sector Banks 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 drives for recovery of loss assets, to put in place early warning system, to replace system of post dated cheques with Electronic Clearance System (ECS) and to proactively pursue the loan issues with State Governments.

The Bank wise details of GNPAs and ratio of GNPAs to Gross Advances of Nationalized Banks for the last two years are as under:  Click here to see Annexure

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

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DSM/RS/Hb

Gross NPAs of nationalized banks reached Rs.73,038 crore (2.94%); recovery channels and supervisory measures urged. Gross NPAs of nationalized banks were Rs.73,038 crore (2.94% of Gross Advances) as of June 2012. Banks must monitor NPAs and pursue recovery; the RBI supervises NPA levels via inspections, regulatory returns and meetings. Recovery channels include the Securitization and Reconstruction Act, Debt Recovery Tribunals and Lok Adalats. The Government directed Public Sector Banks to appoint nodal recovery officers, run special recovery drives, implement early warning systems and replace post dated cheques with electronic clearing.