NPAs of Public Sector Banks Doubled to Rs5.40 Lakh Crore in Past Seven Years: Govt
Moneylife Digital Team 14 December 2021
The non-performing assets (NPAs) of public sector banks (PSBs) have almost doubled over the past seven years to Rs5.40 lakh crore, the Rajya Sabha was informed on Tuesday. 
In a written reply, Dr Bhagwan Karad, minister of state for finance, says, between June 2014 to September 2021, gross NPAs of 13 banks, including IDBI Bank Ltd (which has now become a private sector bank), increased to Rs5,40,442 crore from Rs2,24,542 crore. 
State Bank of India (SBI) tops the list, with its NPAs jumping to Rs1.21 lakh crore as of September 2021 from Rs74,482 crore in June 2014. As of 30 September 2021, SBI has stressed assets, including restructured standard advances worth Rs1,23,386 crore, out of which about Rs1.21 lakh crore are its gross NPAs.
Chaudhary Sukhram Singh Yadav and Vishambhar Prasad Nishad, both members of Parliament (MPs) had asked for details of NPAs of PSBs as of 30 June 2014 and 30 September 2021.
SBI is followed by Punjab National Bank (PNB), which saw its NPAs increasing to Rs98,484 crore from Rs32,416 crore during the same period. 
However, as per the data disclosed by the minister, these 13 lenders witnessed the percentage of gross advances compared with NPAs declining to 10.52% from 12.17% over the past seven years. 
Meanwhile replying to a question asked by MP Dr Amar Patnaik, the minister says, "...the average time between the occurrence of fraud and detection in FY20-21 was 23 months, and the same in the case of large value frauds of Rs100 crore and above, was 57 months."
RBI in its annual report for FY20-21 has stated that private sector banks have reported a rise of 35% in value terms in frauds while PSBs have reported a decline of 45%. According to data disclosed by the central bank, 59.2% of the total value of frauds were reported by public sector banks, followed by private sector banks at 33.5% during 2020-21. 
In terms of area of operations, RBI had said, frauds have been occurring predominantly in the loan portfolio or advances category, both in terms of number and value.
1 year ago
While the RBI mentioned that frauds on advances and loans increased, can it clarify whether such increase sector-wise and loan-band wise. Often banks are wont to push the MSMEs to the wall mentioning that they are the riskiest to lend?
1 year ago
Such a worrisome scenario obviously puts the Modi govt in highly awkward position. Let the FM come out with real reasons behind such a poor show.
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