- Union Minister of Finance informed Lok Sabha about the present state of Bank Non Performing assets(NPA) in India.
- The minister said that as per RBI provisional data on global operations, the aggregate amount of gross NPAs of Public sector banks(PSBs) and Scheduled Commercial Banks(SCBs) till 31st March,2019 were Rs.8 lakh crore and Rs. 9.5 lakh crore respectively.
- Data on NPAs is regularly published by RBI as part of its Financial Stability Reports.NPA data is not collated by RBI in terms of corporate houses/companies.
- The primary reasons for spurt in NPA’s are (a)aggressive lending practices (b)wilful default / loan frauds / corruption in some cases and (c)economic slowdown.
- Over the last four years,Government has taken comprehensive steps under its 4R’s strategy of (a)recognising NPAs transparently (b)resolving and recovering value from stressed accounts (c)recapitalising PSBs and (d)reforms in banks and financial ecosystem to ensure a responsible and clean system.
- Further,the Insolvency and Bankruptcy Code, 2016(IBC) has been enacted.Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act has also been amended to make it more effective.
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