In order to improve performance of public sector banks, the government on Monday sought suggestions from the general public on various parameters, including bad assets that have hit a record low in terms of volumes.
“Suggestions from the general public as to how to improve performance of public sector banks on various parameters are invited by the Department of Financial Services ...,” an official statement said. The suggestions can be posted on the website www.mygov.in..
The government will post the information related to performance of public sector banks (PSBs) vis-a-vis private sector banks. At present, there are 27 public sector banks and 22 private sector lenders in the country.
Public sector banks accounted for over 90 per cent of total non-performing assets (NPAs) that the banking sector registered in 2013-14.
Of the Rs.2.40-lakh crore gross NPAs reported by the banking system in 2013-14, Rs.2.16 lakh crore gross NPAs came from the public sector banks, Parliament was informed. Private sector banks had gross NPAs of Rs.22,738 crore as on March 31, 2014.
NPA of public sector banks rose sharply to 5.33 per cent of total advances in September, mainly due to sluggishness in the economy and other factors, including delay in environmental clearances.
Gross NPAs of state-run lenders stood at 4.72 per cent of total advances at the end of March this year.
The combined gross NPAs of public and private sector banks were at Rs.1.76 lakh crore and Rs.1.31 lakh crore in 2012-13 and 2011-12, respectively.
