Business Mantra News
- It is a matter of great concern that Gross NPA of state run Banks has reached 9.6% as on 31-03-2017, which is not at all acceptable as per the health of the Banking Industry.
- If restructured loans are also included, then the GNPA is 12%
- NPA needs to be immediately resolved. Says Reserve Bank of India Governor Mr. Urjit Patel in the presence of Finance Minister Mr. Arun Jaitley, Chiefs of Banks and noted industrialists, in Insolvency Summit hosted by CII
- Banks shall have to recapitalize to remain healthy.
- 5% of the Gross NPAs of the Banks are from large borrowers
- Patel blamed the Banks for their bad credit appraisal encouraging and favouring dishonest industrialists.
- Reorganization of Banks’ capital by recovery measures of stressed assets, issue of fresh capital, dilution of government’s share in banks, further infusion of fresh funds, sale of non-core assets and merger of banks meticulously may be the strategy of the Government of India to deal with this situation.
- Bank of Maharastra, Central Bank of India, Dena Bank, IDBI Bank, Indian Overseas Bank, UCO Bank have been under special watch of Reserve Bank and the Government of India due to rise in NPA level and erosion of capital.
- Speaking on the occasion Finance Minister Mr. Arun Jaitley has given emphasis on reducing and liquidating NPA and not the companies and save businesses.