Big Public Sector Banks (PSBs) have shown good recovery progress, after seeing a stressful nine months period covering April to December of the financial year, when compared to the previous financial year covering the same period. This has boosted the confidence level of the bankers. The stumbling bad accounts of large borrowers in the form of stressed assets were however, was indeed a daunting experience for a full-fledged display of recovery position.
Banks viz State Bank of India, PNB, and Bank of Baroda the largest of the banks have come out with a figure between 40 to 136 per cent increase in recoveries from stressed loans in April December period. However, Canara Bank was an exception with 23 per cent decrease in this area. The recoveries in toto of the seven large banks went up by 59 per cent (a figure of Rs. 25,700 crores)
The recoveries are mainly attributed to the
- Retail borrowers (Individuals)
- Small and medium enterprises and
- Agriculture
However, repayment from large units is still to come. It is felt that the pressure on loan books, Public Opinion and better co-ordination among lenders, especially on companies, has begun to give results. The recovery position of the banks is shown as per the chart below:
No Comments