Nifty99000 100%

Sensex99000 100%

Article rating: 4.2
Article rating: 4.8
Article rating: 4.3
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: 4.0
Article rating: 4.0
Article rating: No rating
Article rating: 3.0


Banks’ bad loans surge to Rs 9.61L cr by FY18: Govt

Author: PTI/Wednesday, August 1, 2018/Categories: Banking & Financial Services

Banks’ bad loans surge to Rs 9.61L cr by FY18: Govt

New Delhi - Indian banks stood on gross bad loans of more than Rs 9.61 lakh crore by the end of 2017-18 while loans to industries formed a major chunk of such non-performing assets, official data showed today.

After the asset quality review (AQR) directed by the Reserve Bank to lenders in 2015, transparent recognition of stressed assets as non-performing assets (NPAs) began, Minister of State for Finance Shiv Pratap Shukla said in Parliament.

"As a result of transparent recognition of stressed assets as NPAs, aggregate gross non-performing assets of scheduled commercial banks, as per Reserve Bank data for domestic operations, increased to Rs 9,61,962 crore as on March 31, 2018," Shukla said in a written reply in the Rajya Sabha.

Of this, Rs 85,344 crore worth of NPA pertained to agriculture and allied activities and Rs 7,03,969 crore pertained to industries, he added.

The minister said in the course of last ten years, 2015-16 witnessed the highest increase in aggregate gross NPAs in the banking system.

Shukla further informed that Rs 1,51,482 crore of loan amount has been written-off (including compromise) by the banks during 2017-18.

"Banks write-off NPAs as part of their regular exercise to clean up their balance-sheet, tax benefit and capital optimisation. Borrowers of such written-off loans continue to be liable for repayment. Recovery of dues takes place on ongoing basis under legal mechanisms...Therefore, write-off does not benefit the borrower," he said.

Over the last three fiscal years to March 2018, gross domestic loans outstanding of banks for retail, agriculture and allied activities and micro and small enterprises showed significant growth, he said.

Separately, talking about 19 nationalised banks, the minister said that their gross NPAs increased by Rs 1,54,470 crore in 2017-18.

Among these banks, Punjab National Bank had the highest amount of gross NPA at Rs 86,620 crore by end-March 2018 followed by Bank of India Rs 62,328 crore; Bank of Baroda Rs 56,480 crore; Union Bank of India Rs 49,370 crore; Canara Bank Rs 47,468 crore; Indian Overseas Bank Rs 38,180 crore and Central Bank of India at Rs 31,131 crore.

Vijaya Bank had the lowest NPA at Rs 7,526 crore while Punjab and Sind Bank Rs 7,802 crore.  

The remaining banks had gross NPAs ranging from Rs 11,990-30,550 crore.

In response to another query on loans disbursed under Pradhan Mantri Mudra Loan Scheme, Shukla said over 13.30 crore loans were sanctioned to borrowers as on July 7, 2018 since inception of the scheme in April 2018.

Print Rate this article:

Number of views (197)/Comments (0)

rajyashree guha


Other posts by PTI
Contact author

Leave a comment

Add comment



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



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