Insta
Reserve Bank of India. (Ramesh Pathania/Mint via Getty Images)
Reserve Bank of India (RBI), has stated that both the gross and net NPAs (Non-Performing Assets) of scheduled commercial banks have fallen in the last two quarters (April - September 2018), as reported by The Hindu.
Scheduled banks, whether private, public or foreign, are listed under the second schedule of RBI Act, 1934 and are required by law to keep their cash reserves with the RBI. Non-scheduled banks, which are few, do not have such compulsion.
Commenting on the positive role played by the government and RBI to relieve the stress in the banking system, the reported noted, “As a consequence of these measures, the gross NPAs as well as net NPAs of the scheduled commercial banks, after peaking in March 2018, have registered declines for two consecutive quarters.”
While the government has successfully rolled out its flagship legislation, IBC, 2016 (Insolvency and Bankruptcy Code), to help banks recover their dues from defaulters, it has also announced a bank recapitalisation scheme to improve their lending activities.
On the other hand, India’s central bank, the RBI, has enforced stricter norms for NPA classification and put eleven banks under the PCA (Prompt Corrective Action) framework to improve operational efficiency.
The NPA’s in the Indian banking system reached a high of Rs ten lakh crores, earlier this year.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest