NEW DELHI: The gross dangerous loans of public sector banks (PSBs) hit 15 according to cent of advances in 2017-18, government stated in Parliament on Tuesday.
The gross non-performing assets (NPA) ratio for PSBs stood at 14.6 according to cent in 2017-18, minister of state for finance Shiv Pratap Shukla stated in Parliament citing information from the Reserve Bank.
IDBI Bank crowned the listing in relation to gross dangerous loans at 28 according to cent of gross advances followed by way of Indian Overseas Bank (25.3 according to cent); UCO Bank (24.6 according to cent); United Bank of India (24.1 according to cent); Dena Bank (22 according to cent); Central Bank of India (21.five according to cent); Bank of Maharashtra (19.five according to cent) and Punjab National Bank (18.four according to cent), the minister stated.
Country's biggest lender SBI had gross NPAs to the song of 10.9 according to cent of gross advances as on March 31, 2018.
Except for Vijaya Bank, with gross NPA of 6.3 according to cent as additionally the bottom amongst all PSBs throughout the year and Indian Bank at 7.four according to cent, the remainder of the lenders had their NPAs in double digits.
Thus, best those two banks posted earnings, at Rs 727 crore and Rs 1,259 crore respectively, in 2017-18.
While the entire others registered losses in crores with PNB topping the chart at Rs 12,283 crore.
PNB losses have been exacerbated by way of over Rs 14,000 crore scam on the financial institution, allegedly by way of diamond jeweller Nirav Modi and his relations unearthed in February.
IDBI Bank registered a web loss of Rs 8,238 crore; SBI Rs 6,547 crore; Bank of India Rs 6,044 crore; Union Bank of India Rs five,247 crore; Central Bank of India Rs five,105 crore and Allahabad Bank a loss of Rs four,674 crore among others, Shukla stated citing the RBI information.
In view of the rising dangerous loans, the RBI had asked banks for a Asset Quality Review (AQR) in 2015, he stated, adding that the exercise published top incidence of non-NPAs in PSBs.
Under AQR, the expected losses on stressed loans, no longer provided for previous below flexibility given to restructured loans, have been reclassified as NPAs and provisions have been made towards them, the minister stated.
The minister stated that the PSBs have began clean-up exercise by way of recognising dangerous loans and made provisions for the expected losses.
"In the last 25 financial years, the gross NPA ratio for PSBs was highest in 1993-94 at 24.8 per cent and was also higher in six other financial years," Shukla stated in accordance with a query if the 21 PSBs suffered the easiest ever losses and largest pile-up of gross NPAs in 2017-18.
Shukla stated banks have set up a committee on answer of stressed assets and feature followed a five-pronged strategy to clear up their steadiness sheets.
"A number of measures have been taken to streamline recovery...The Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted to create a unified framework for resolving insolvency and bankruptcy matters," the minister stated.
The gross non-performing assets (NPA) ratio for PSBs stood at 14.6 according to cent in 2017-18, minister of state for finance Shiv Pratap Shukla stated in Parliament citing information from the Reserve Bank.
IDBI Bank crowned the listing in relation to gross dangerous loans at 28 according to cent of gross advances followed by way of Indian Overseas Bank (25.3 according to cent); UCO Bank (24.6 according to cent); United Bank of India (24.1 according to cent); Dena Bank (22 according to cent); Central Bank of India (21.five according to cent); Bank of Maharashtra (19.five according to cent) and Punjab National Bank (18.four according to cent), the minister stated.
Country's biggest lender SBI had gross NPAs to the song of 10.9 according to cent of gross advances as on March 31, 2018.
Except for Vijaya Bank, with gross NPA of 6.3 according to cent as additionally the bottom amongst all PSBs throughout the year and Indian Bank at 7.four according to cent, the remainder of the lenders had their NPAs in double digits.
Thus, best those two banks posted earnings, at Rs 727 crore and Rs 1,259 crore respectively, in 2017-18.
While the entire others registered losses in crores with PNB topping the chart at Rs 12,283 crore.
PNB losses have been exacerbated by way of over Rs 14,000 crore scam on the financial institution, allegedly by way of diamond jeweller Nirav Modi and his relations unearthed in February.
IDBI Bank registered a web loss of Rs 8,238 crore; SBI Rs 6,547 crore; Bank of India Rs 6,044 crore; Union Bank of India Rs five,247 crore; Central Bank of India Rs five,105 crore and Allahabad Bank a loss of Rs four,674 crore among others, Shukla stated citing the RBI information.
In view of the rising dangerous loans, the RBI had asked banks for a Asset Quality Review (AQR) in 2015, he stated, adding that the exercise published top incidence of non-NPAs in PSBs.
Under AQR, the expected losses on stressed loans, no longer provided for previous below flexibility given to restructured loans, have been reclassified as NPAs and provisions have been made towards them, the minister stated.
The minister stated that the PSBs have began clean-up exercise by way of recognising dangerous loans and made provisions for the expected losses.
"In the last 25 financial years, the gross NPA ratio for PSBs was highest in 1993-94 at 24.8 per cent and was also higher in six other financial years," Shukla stated in accordance with a query if the 21 PSBs suffered the easiest ever losses and largest pile-up of gross NPAs in 2017-18.
Shukla stated banks have set up a committee on answer of stressed assets and feature followed a five-pronged strategy to clear up their steadiness sheets.
"A number of measures have been taken to streamline recovery...The Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted to create a unified framework for resolving insolvency and bankruptcy matters," the minister stated.
PSBs' bad loans rise to 15% of gross advances in FY18
![PSBs' bad loans rise to 15% of gross advances in FY18]()
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July 25, 2018
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