A set of 19 large and mid-sized public sector banks (PSBs) wrote off loans to the tune of almost Rs 41,000 crore in the December quarter (Q3 FY19), an increase of 34 per cent over the corresponding period of FY18, reports Financial Express (FE).
It is estimated that the country’s largest lender State Bank of India (SBI) wrote off loans of around Rs 10,000 crore in Q3, rising seven per cent from a year ago.
However, Vijaya Bank’s non-performing assets (NPAs) increased by almost 243 times on a year-to-year basis to Rs 487 crore in Q3 FY19. IDBI Bank’s bad loans surged by a substantial 4,783 per cent on a yearly basis to Rs 562 crore in the same period.
However, some PSBs like Punjab National Bank (PNB), Corporation Bank, UCO Bank, Allahabad Bank and Andhra Bank showed a decline in bad loans rations in their balance sheets.
Due to the proactive approach adopted by the NDA government in cleaning up the NPA mess inherited from the previous governments, the Indian banking system is on the course to become sustainable and profitable again.
With the present government's flagship legislation, the IBC Code, public sector banks (PSBs) recovered a massive Rs 39,200 crore in the first quarter of 2018-19 (April-June). This was much higher than recoveries in the previous two years put together (Rs 15,400 crore and Rs 23,500 crore last year and the year before).
Also, Secretary to the Union Corporate Affairs Ministry, Injeti Srinivas, recently stated that the IBC has helped to, directly and indirectly, address over Rs 3 lakh crore worth of distressed assets.
Also Read: From Crown Of Glory To Crown Of Thorns: Ten Banking Honchos Now Facing The NPA Heat In Modi Regime
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.