Measures adopted by the Modi government paying off, the recovery against NPAs has doubled for public sector banks

According to a report published by Times of India, the public sector banks have recovered Rs 60,713 crore against non-performing assets (NPAs) in the first half of this year. This amount is the double of the amount recovered in the corresponding period last year. According to the report, the Finance Ministry in response to a parliamentary question said that following the amendments in the Banking Regulation Act, the RBI had directed banks to initiate insolvency proceedings before the National Company Law Tribunal (NCLT) in 41 cases. Twelve out these 41 cases had cumulative outstanding of Rs 1,97,769 crore on March 31, 2017, and remaining 29 had an outstanding of Rs 1,35,846 crore as on June 30, 2017.

The report mentions RBI data quoted by the government in reply to BJP MPs Kirti Azad and Bharatiben Shiyal. “As per RBI data on global operations (with provisional data for September 2018) during the last three and a half financial years, NPAs of scheduled commercial banks reduced by Rs 2,83,770 crore due to recoveries,” the government told.

NPAs had been piling up since 2008, a period during which the UPA was in power, as revealed by various measures including Asset Quality Review (AQR) adopted by the Modi government. According to RBI inputs, aggressive lending practices, wilful defaults, loan frauds, corruption and economic slowdown were the primary reasons for the hike in the stressed assets. The AQR measure led to the reclassification of stressed assets as NPAs which led to an increase in the gross NPAs of scheduled commercial banks from Rs 2,51,054 crore as on March 31, 2014 to Rs 3,09,399 crore as on March 31,2015; Rs 5,66,247 crore on March 31, 2016; Rs 7,28,740 on March 31, 2017 and Rs 9,62,621 crore on March 31, 2018. This declined to Rs 9,46,062 in September.

- Advertisement - - Article resumes -

Under the new Insolvency and Bankruptcy Code (IBC), the incentive to abuse the legal system has been taken away as the interim resolution professionals take over the management of corporate debtor at the outset said the Finance Ministry. Also, FEMA has been amended to include a three-month jail term for a borrower who does not provide the asset details and for the lender to get possession of the mortgaged property in 30 days.

Share and Support:
Support OpIndia by paying for content

Most read articles recently

Philip Kotler and Narendra Modi

Philip Kotler endorses the award to PM Modi, which Rahul Gandhi had tried to run down

Earlier Rahul Gandhi, with help from fake news peddling website The Wire, had tried to insinuate that the award was insignificant.

Chidambaram accuses Modi government of fiscal indiscipline, netizens cannot stop laughing

Chidambaram stated that the Modi government is following a 'scorched earth' policy by promising big schemes for which there is no money.

Gujarat couple prints Rafale details in their wedding card, ask people to vote for Modi instead of giving gifts

A unique wedding invite from this Gujarat based couple to make people aware about the Rafale deal
Dr. Chaddha of Vicky Donor

Rahul Gandhi wins first ever Dr. Chaddha Presidential Award for being a lucky sperm

Congress has decided to celebrate 19 June as World Sperm Day. Rahul Gandhi is supposed to be the Prime Minister of India by then.

Twist in the tale: Kerala activist claims it was Kanakdurga who beat up her mother-in-law, a staunch Ayyappa devotee

Sandeep Varier alleged that it was actually Kanakdurga who had attacked her mother-in-law, a staunch Sabarimala and Lord Ayyappa devotee

Chhattisgarh: Congress government to cancel the ambitious Ayushman Bharat scheme in state

Recently, Mamata Banerjee also pulled West Bengal out of Ayushman Bharat scheme, accusing Modi of taking full credit

Voter registration: A step-by-step guide to register online on the voter list

A comprehensive guide for the first time voters to register themselves on the portal and ensure their participation in the world's largest democracy

Mahendra Singh Dhoni: Not going gentle into the dark night

Dhoni's remarkable match-winning innings in an important match under extreme pressure only shows that he has still got what it takes
Rahul Gandhi-Rafale

French Ambassador calls out Congress mouthpiece National Herald over latest Rafale lies

The fake news was first shared and spread by the usual propagandists on Twitter like Prashant Bhushan
Fact-Check: No trees were felled to make helipad for PM Modi in Odisha, only 40 shrubs

Media reported ‘thousands of trees felled ahead of PM Modi’s Odisha visit to make helipad’, turns out, it was a lie

The East Coast Railways Spokesperson has said that no trees were felled to make a temporary helipad for Prime Minister Modi in Odisha, only some shrubs and saplings were removed

Latest articles

Connect with us


Don't miss these