NPAs ON THE RISE: A BIG CONCERN FOR PUBLIC SECTOR BANKS

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BUSINESS MANTRA: FARIDABAD

LALIT KUMAR VIRMANI ( Author is an Ex Banking Executive)

Minister of State for Finance Mr. Jayant Sinha has informed Rajya Sabha in written reply that NPA in Public Sector Banks(PSBs) was a big concern due to increase year after year.

Gross NPAs showed an increase of 5.43percent on FY-2014-15 as compared to increase of 4.72 percent in FY 2013-14. In value terms NPA was Rs.2.16 Lakh Crores in FY 2013-14 and Rs.2.67 Lakh Crores in FY 2014-15.

RBI and PSBs have expressed concern over the mounting NPAs, which affect their profitability and Capital Adequacy. No doubt on recovery front, PSBs have also done well to recover Rs. 41236 Crores in FY 2014-15 as compared to Rs.33698 Crores in the previous fiscal year. But the same is not sufficient to keep NPAs under control. NPAs shall be under control when fresh NPAs do not rise and there is a considerable recovery.

 

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