Banks’ NPAs decline to ₹8.08 lakh crore in Sept 2020: GovtPage Visited: 18
Non-performing assets (NPAs) or bad loans of the banking sector came down from a high of ₹10.36 lakh crore at the end of March 2018 to ₹8.08 lakh crore at the end of September 2020 due to various initiative of the government, Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday.
As a result of the Asset Quality Review (AQR) and subsequent transparent recognition by banks, stressed accounts were reclassified as NPAs and expected losses on stressed loans not provided for earlier under flexibility given to restructured loans were provided for, he said in a written reply.
Further, he said, all such restructuring stressed loans were withdrawn.
Primarily, as a result of transparent recognition of stressed assets as NPAs, gross NPAs of scheduled commercial banks as per the RBI data on global operations rose from ₹3,23,464 crore as on March 31, 2015 to ₹10,36,187 crore as on March 31, 2018, he said.
Gvoernment’s strategy of recognition, resolution, recapitalisation and reforms have resulted in decline of NPAs by ₹2,27,388 crore to ₹8,08,799 crore as on September 30, 2020, he added.
Replying to another question, Thakur said government borrowings from market increased by 57% in Q1, 90% in Q2 and 48% in Q3 for completed quarters of 2020-21 as compared to 2019-20.
As per the Revised Estimate (RE) in the Union Budget 2021-22, the government borrowing for the current fiscal ending March would be ₹12.80 lakh crore which is 64% higher than the Budget Estimate of ₹7.8 lakh crore.