Press Information Bureau

Government of India

Ministry of Finance

13-December-2012 17:32 IST

The  Public Sector Bank (PSB)-wise details of restructured standard advances for the period March 2010, March 2011, March 2012 are as under:-

Amt. Rs. in crore

The data reporting system of the Reserve Bank of India (RBI) does not collect company-wise details.

The objective of restructuring is to conserve valuable financial assets in a downturn, revival of entities and ensuring safety of the funds lent by the banks.  Although the Gross Non-Performing assets and restructuring of loans of PSBs have shown an increasing trend, at system level, they do not indicate any systemic vulnerability.  The PSBs have posted a net profit of around Rs. 49,500 crore as on 31.3.2012 as against around Rs. 44,900 crore as on 31.3. 2011. 

The Tier 1 Capital to Risk-weighted Asset Ratio (CRAR) of all PSBs are above the regulatory norms of 6%.  As of now, there is no proposal before the Government to support funding of restructuring by PSBs.

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

Loan restructuring remains managed within bank capital adequacy, despite rising restructured advances and no government funding proposal. Loan restructuring of public sector banks aims to conserve assets, revive borrowers and protect lent funds; restructured advances and gross non-performing assets have risen but do not signal system-wide vulnerability. The RBI's reporting does not disclose company-wise details. Public sector banks showed increased net profitability and maintained Tier 1 Capital to Risk-weighted Asset Ratio (CRAR) above regulatory norms. No government proposal exists to fund restructuring, indicating reliance on existing bank capital and supervisory oversight.