PSB stressed assets at Rs 7.4 L crFinance Minister Jaitley promises action soon
Last Updated IST
Arun Jaitley. PTI
As the total stressed assets of public sector banks zoomed to Rs 7.40 lakh crore in 2016-17 from Rs 6.99 lakh crore in the previous year, Finance Minister Arun Jaitley on Monday said the Reserve Bank of India was at an advanced stage of preparing a list of NPAs where resolution is required under insolvency and bankruptcy rules.
“The RBI is at a fairly advanced stage of preparing a list of those debtors where a resolution is required through the Insolvency and Bankruptcy Code process and you will shortly be hearing about it,” Jaitley told reporters after meeting chiefs of PSU banks.
Officials attending the meeting told DH, gross mnon-performing assets (NPAs) of public sector banks have reached Rs 5.74 crore in 2016-2017 from Rs 4.78 lakh crore in the previous year.
They said net NPAs (un-provided for loans) have zoomed to Rs 3.21 lakh crore in 2017 from Rs 2.86 lakh crore in 2016.
The sources said out of Rs 7.40 lakh of stressed assets, steel, infrastructure, agriculture and textiles contributed the most.
While the stressed assets in steel stood at largest 26.1%, It was 11.8% for infrastructure, 9.7% for agriculture and 6.6% for textiles.
The government has promulgated an ordinance last month authorising RBI to issue dierctions to any banking company to initiate insolvency resolution process in respect of default.
Further, the RBI may issue directions to the banking companies and specify one or more authorities or committees to advise banking companies on resolution of stressed assets.
Jaitley also said the government was actively working on consolidating state-run banks.
Public sector banks made an operating profit of Rs 1.5 lakh crore in 2016-17 and had a net profit at Rs 574 crore after making due provisions.
“The RBI is at a fairly advanced stage of preparing a list of those debtors where a resolution is required through the Insolvency and Bankruptcy Code process and you will shortly be hearing about it,” Jaitley told reporters after meeting chiefs of PSU banks.
Officials attending the meeting told DH, gross mnon-performing assets (NPAs) of public sector banks have reached Rs 5.74 crore in 2016-2017 from Rs 4.78 lakh crore in the previous year.
They said net NPAs (un-provided for loans) have zoomed to Rs 3.21 lakh crore in 2017 from Rs 2.86 lakh crore in 2016.
The sources said out of Rs 7.40 lakh of stressed assets, steel, infrastructure, agriculture and textiles contributed the most.
While the stressed assets in steel stood at largest 26.1%, It was 11.8% for infrastructure, 9.7% for agriculture and 6.6% for textiles.
The government has promulgated an ordinance last month authorising RBI to issue dierctions to any banking company to initiate insolvency resolution process in respect of default.
Further, the RBI may issue directions to the banking companies and specify one or more authorities or committees to advise banking companies on resolution of stressed assets.
Jaitley also said the government was actively working on consolidating state-run banks.
Public sector banks made an operating profit of Rs 1.5 lakh crore in 2016-17 and had a net profit at Rs 574 crore after making due provisions.