Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

SBI shocks with highest NPAs in 2017-18

Author: IANS/Monday, June 11, 2018/Categories: Banking & Financial Services

SBI shocks with highest NPAs in 2017-18

By Sidhartha Dutta 

New Delhi - The State Bank of India (SBI), the country's largest public sector lender, recorded its highest non-performing asset (NPAs) of Rs 1.1 lakh crore in 2017-18, almost equal to what it had registered in the decade before, according to information available through RTI and the bank's annual report.

The gross NPAs of the bank went up from Rs 1.12 lakh crore in 2016-17 to Rs 2.23 lakh crore in the last fiscal.

This happened while the Bharatiya Janata Party (BJP)-led government completed nearly four years in office.

The bank, in a reply to an RTI application by IANS, said that the gross NPAs of SBI till December 31, 2016, were Rs 1,123,43 crore. On December December 31, 2017, the NPAs were Rs 1,99,141 crore -- a net increase of Rs 86,798 crore. The SBI's annual report showed that the gross NPAs till the end of 2017-18 were Rs 2,23,427 crore.

According to the bank, the rising NPA levels and fresh slippages across sectors could be attributed to i) inadequate pick-up in the global economy and negative spillovesr from the global financial markets; ii) less than adequate pick-up in domestic growth and declining exports; and iii) delay in realisation of receivables due to subdued demand, reduced market confidence and stress in steel, power and infrastructure projects.

According to the bank's reply, the gross NPAs of the bank in 2016-17 registered a net increase of Rs 14,170 crore from 2015-16.

The net increase in the NPAs from 2014-15 (Rs 56,725 crore) to 2015-16 (Rs 98,173 crore) was Rs 41,448 crore, which was the second-highest in a decade.

There was a decline in the gross NPAs of SBI from Rs 61,605 crore in 2013-14 to Rs 56,725 crore in 2014-15, going down by Rs 4,880 crore. This was during the United Progressive Alliance's (UPA) rule at the Centre.

From 2012-2013 (Rs 51,189 crore) to 2013-14 (Rs 61,605 crore), there was a net increase in the gross NPAs of SBI of Rs 10,416 crore.

The RTI reply also says that the net increase in the gross NPAs of SBI from 2011-12 (Rs 39,676 crore) to 2012-2013 (Rs 51,189 crore) was Rs 11,513 crore while from 2010-11 (Rs 25,326 crore) to 2011-12 (Rs 39,676 crore) it was Rs. 14,350 crore.

From 2009-10 (Rs 19,535 crore) to 2010-11 (Rs 25,326 crore) the net increase in the NPAs was Rs 5,791 crore and the increase from 2008-09 (Rs 15,714 crore) to 2009-10 (Rs 19,535 crore) was Rs 3,821 crore.

It also mentions that the net increase in the NPAs from 2007-08 (Rs 13,160 crore) to 2008-09 (Rs 15,714 crore) was Rs 2,554 crore.

Asked what the SBI was doing to reduce NPAs, it said it had taken a few steps to reduce them. "In cases where soft recovery measures do not fructify, legal action is initiated like action under SARFAESI Act, filing suits in Debt Recovery Tribunals and other Courts. Depending on the merits of the case, recourse to higher courts like High Courts and the Supreme Court is also taken," it said.

It further said that SBI was arranging Bank Adalats and actively participating in Lok Adalat for recovery. It also mentioned E-Auction for increased transparency and better price realisation.

Among other steps for recovery, the bank enumerated: 1) Sale to ARCs is also explored in select cases; 2) Resolution of NPA through the new Bankruptcy Law is also resorted to effectively, since the provisions of SICA Act have been brought under new Bankruptcy Law; 3) Identifying and engaging with strategic investors for takeover of stressed assets; 4) Entering into One-Time Settlement with borrowers.

It also moved to declare borrowers as wilful defaulter on a case-to-case basis and it aimed to persuading large corporate borrowers under stress to sell non-core assets, dilute their shareholding and bring in strategic investors, thus reducing debt and improving viability.

It said that a number of properties were successfully sold across all geographies through mega e-auctions.

It said that in "compromise cases", the Bank endeavoured to recover its dues to the maximum extent possible with minimum sacrifice.

Print Rate this article:
No rating

Number of views (81)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free