Govt monitoring efforts to recover NPA

High interest rates and lower economic growth has impacted the repayment capacities of borrowers, pushing up the NPAs of banks to Rs1.27 lakh crore in the first nine months of 2011-12 fiscal

With bad loans of banks touching Rs1.27 lakh crore during April-December 2011, the government said it is monitoring the efforts for recovery of the non-performing assets (NPAs) by the lenders.

“(We are) aggressively looking at efforts to recover NPAs,” financial services secretary D K Mittal told reporters here.

High interest rates and lower economic growth has impacted the repayment capacities of borrowers, pushing up the NPAs of banks to Rs1.27 lakh crore in the first nine months of 2011-12 fiscal.

Banks' bad loans stood at Rs94,084 crore in 2010-11, Rs81,813 crore in 2009-10 and Rs68,220 crore in 2008-09.

Mittal further said that "some more capital" would be infused in the country's largest public sector lender State Bank of India (SBI) in the current fiscal.

Also, the government “will ensure 11% Tier I capital (equity) for SBI in the next two years,” he added.

Currently, tier-I capital of SBI is around 9%. On 30 March 2012, SBI's executive committee had approved issuance of 3.65 crore equity shares at Rs2,191.69 a piece through preferential allotment to the government to raise about Rs7,900 crore.

The government has recapitalised public sector banks over a period to enable them to maintain Tier-I CRAR (capital to risk assets ratio) at 8%, and also to increase its holding in them to 58%.

User

Commodity trends

Cotton

On 12th March, the Directorate-General of Foreign Trade notified partial lifting of the...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Indian market trends

The Sensex and the Nifty ended flat in the fortnight. The ML Large-cap Index, the ML Mega-cap...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)