Data compiled by FE Bureau reveals that most of the banks have made improvement in bad loan recovery during the period 2017-18. It provides the following further details:
- Banking including Bank of Baroda, Canara Bank, United Bank of India, Union Bank, ICICI Bank and Axis Bank have brought out an increase in their recoveries.
- SBI, PNB and BOI have shown a lesser amount of recovery than that of 2016-17.
- Bank of Baroda has come out with a recovery of Rs. 4,417 crore, which accounted for 8% increase in their recoveries during FY 2018.
- The increase in the recovery could not be attributed to the real efforts, and a chunk of the recovery was due to high provisions made for the bad loans.
- Banks have a minimal share in recovery of large accounts, since National Company Law Tribunal comes in to picture in deciding the fate of such companies and a real picture is likely to come out in 2019.
- ICICI showed a recovery of Rs. 8107 in the FY which was three times more than the recovery during the previous Financial Year. The bank has announced that by 2020 they propose to bring down the net NPA ratio to around 1.5%
- Axis Bank’s recoveries and upgradation during the same period stood at Rs. 8,763 crores which was more than double than that of the previous year.
- 54,726 crores was the recoveries made by SBI during 2018 which was 7% less than that of the previous Financial Year. Their recoveries include upgradation and transfer to Advance under Collection Account (AUCA)
- Punjab National Bank’s recoveries dropped by 58% in 2017-18 to Rs. 4,443 crores.