A figure which was Rs. 2.67 trillion on 31st March 2015 has soared to Rs. 6.89 trillion on 30th June 2017, reports the Minister of State for Finance on April 6, 2018. Don’t think this is something related to our GDP or profit earned on our Exports.  It is a figure which could bring a great shock in many of the households in our country.    Read this with a heavy heart ofcourse.

  1. Indian Public Sector banks’ bad loans have soared to Rs. 6.89 trillion from Rs. 2.67 trillion, in just two years.
  2. Of the total 21 PSU Banks, 11 had Non Performing Assets (NPAs) greater than 15% of their total assets. Five more banks are shortly going to join the list.
  3. All these 11 banks are placed under scrutiny by RBI
  4. Apart from other actions, RBI will curtail their lending activities, opening of new branches and recruitment.
  5. Indian firms and individuals owed Rs. 4.1 trillion to PSBs in overdue loans in the non-priority sector. The main loans related to Corporate Lending, Car Loans, Personal Finance, Credit Card dues and Home Loans as on 31st March 2016.
  6. It is learnt that these NPAs would be far from sufficient to pay off the distressed farms across 8 states in the country.
  7. During the period 2006 to 2016, Bank NPAs had soared around 22 times, which is unimaginable.

NPA Ratio

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