Gross NPAs of 40 banks rises 36.9% in September 2013

February 11, 2014 05:49 pm | Updated May 18, 2016 07:29 am IST - New Delhi

The gross non-performing assets (NPAs) of 40 listed banks increased 36.9 per cent to Rs. 2.22 lakh crore in September 2013 from Rs. 1.62 lakh crore a year earlier, Parliament was informed.

Gross NPAs at United Bank of India rose 160 per cent to Rs. 6,286 crore from Rs. 2,418 crore in September 2012, Finance Minister P. Chidambaram said in a written reply to the Rajya Sabha.

Indian Bank recorded a 110 per cent jump in gross NPAs to Rs. 3,765 crore from Rs. 1,789 crore, he said.

Punjab & Sind Bank’s gross NPAs grew 109 per cent to Rs. 2,240 crore as against Rs. 1,071 crore.

To improve the health of the financial sector, reduce NPAs, improve asset quality of banks and prevent slippages, the Reserve Bank of India has issued instructions which stipulate that each bank have a board-approved loan recovery policy, he said.

In a separate reply, Minister of State for Finance Namo Narain Meena said, “The government is committed to keep all the public sector banks adequately capitalised so as to ensure that the credit requirements of productive sectors of our economy are adequately met.”

The total amount of capital infused in public sector banks was Rs. 62,234.24 crore between 2004-05 and 2013-14, Mr. Meena said, adding that no capital was infused in 2004-05.

The infusion of capital in banks increases the government’s stake in them, he said. The capital infused in banks not only helps them to increase lending, it also generates revenue for the government in the form of dividend, dividend distribution tax and corporate tax on profit earned by borrowers, he added.

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