Bank NPAs to improve following project approvals by CCI: Govt
24 Jan 2014 11:21 PM GMT
‘The CCI, in the last three to six months, has cleared around 60-70 projects which were stalled for long time and when these projects start moving, am sure a slight movement would be generated,’ Financial Services secretary Rajiv Takru told reporters at an event on Thursday.
The official said he expects the improvement to occur in the next financial year. Takru said although there are some banks where old non-performing assets (NPAs) are showing their true colours, there are a few banks where forward movement is seen. The CCI, which was formed in January last year, approved most of the stalled projects after Oil Minister M Veerappa Moily was given additional charge of the Ministry of Environment and Forests. In its half-yearly Financial Stability Report released last month, the RBI had estimated that gross NPAs in the system would rise to 4.6 per cent by September 2014 from 4.2 per cent in September 2013, or to about Rs 2.29 trillion from Rs 1.67 trillion a year earlier.
The official said he expects the improvement to occur in the next financial year. Takru said although there are some banks where old non-performing assets (NPAs) are showing their true colours, there are a few banks where forward movement is seen. The CCI, which was formed in January last year, approved most of the stalled projects after Oil Minister M Veerappa Moily was given additional charge of the Ministry of Environment and Forests. In its half-yearly Financial Stability Report released last month, the RBI had estimated that gross NPAs in the system would rise to 4.6 per cent by September 2014 from 4.2 per cent in September 2013, or to about Rs 2.29 trillion from Rs 1.67 trillion a year earlier.
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