State-run banks' bad loans surge by 1 lakh cr in Apr-Dec
Bad loans of public sector banks rose by over Rs 1 lakh crore during April-December period of 2016-17, the bulk of which came from power, steel, road infrastructure and textiles sectors.
Public sector banks' gross bad loans stood at Rs 5,02,068 crore at the end of 2015-16.
Bad loans rose by over Rs 1 lakh crore in the first nine months of current fiscal to Rs 6,06,911 crore by December 31, 2016, Minister of State for Finance Santosh Gangwar said in a written reply to the Rajya Sabha today.
The gross non-performing assets (NPAs) were Rs 2,67,065 crore at the end of 2014-15.
For private sector banks, gross NPAs grew to Rs 70,321 crore by December 31, 2016, from Rs 48,380 crore as on March 31, 2016. Their gross NPAs were Rs 31,576 crore at the end of fiscal year 2014-15.
"The Government has taken sector-specific measures (power, road, infrastructure, textiles, steel etc) where incidence of NPA is high," Gangwar said.
The Insolvency and Bankruptcy Code (IBC) has been enacted, he said.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and the Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans.