Non-Performing assets of public sector banks to be examined by parliamentary panel

As per the government, the main reasons for rise in NPAs are sluggishness in the domestic growth in the recent past, slow recovery in the global economy and continuing uncertainty in global markets.

By: PTI | New Delhi | Updated: April 29, 2016 5:03 pm
kv thomas, npa, non performing assets, public sector banks, npa banks, npa panel, business news, banking news, banking, india news New Delhi: KV Thomas, Chairman, Public Accounts Committee (PAC) addressing a press conference at Parliament house in New Delhi on Friday. (PTI Photo)

Worried over rising bad loans, a Parliamentary Panel has suo motu decided to examine the non-performing assets of the public sector banks that touched Rs 3.61 lakh crore at the end of December 2015.

“We examined chairpersons of the PSBs as well as Governor of Reserve Bank (Raghuram Rajan),” Chairman of Public Accounts Committee K V Thomas told reporters in New Delhi on Friday. He said apart from CAG reports, PAC also selected certain subjects “suo motu”, including one on the NPAs of the public sector banks.

“Now we have received the reply from the Governor of the RBI a few days back and that will be further examined,” Thomas said adding, “It is on basis of our observations, government appointed a high powered committee to study about the NPA”.

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At the end of December, as many as 701 accounts with bad loans exceeding Rs 100 crore owed public sector banks (PSBs) Rs 1.63 lakh crore with the State Bank of India accounting for the biggest chunk. Gross NPAs of PSBs rose to Rs 3.61 lakh crore at the end of December 2015.

As per the government, the main reasons for rise in NPAs are sluggishness in the domestic growth in the recent past, slow recovery in the global economy and continuing uncertainty in global markets leading to lower exports of various products such as textiles and leather.

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  1. K
    krish
    Apr 30, 2016 at 8:27 pm
    Main reason of NPA could be the promoters between 2006-2012 were not keen on implementing and completion of projects to its scope but to get rich using banks fund..
    Reply
    1. S
      sunny
      Apr 30, 2016 at 4:29 am
      Parliamentary panel headed by Kongres definitely bail out the NPA,S as NDA also want it . In a democracy we should accept the views of Govt. Foe rich NPA govt find solution and write off the loan, were as poor farmer too faces similar or worst reason for not repaying the loan forced to commit suicide. In a democracy there should not be different rules for people
      Reply
      1. L
        l s
        Apr 30, 2016 at 3:14 am
        The public does not want politicians or any politician included parliamentary panel to examine this huge scam. It would be a task gone waste. A panel under the Supreme Court and including eminent personalities and experts in bank management would be the correct panel to go into these kind of frauds.
        Reply
        1. S
          Sk
          Apr 30, 2016 at 5:21 am
          Parliamentary panel is a good idea because they have power to question all stake holders
          Reply
          1. V
            v b
            Apr 29, 2016 at 7:59 pm
            Some of the NPAs may be due to avoidable and controllable factors like diversion of funds, mismanagement and/or Business Plan being faulty while other NPAs may be due to factors beyond their control such as the sluggishness in growth of the economy, the Demand being poorer than expected, inputs not being available in requisite quany and/or at costs as projected in the Borrower’s Business Plan. While in the latter case Banks have to wait for conditions to turn favourable and the Governmentt may take steps whatever steps are possible to make conditions supportive and favourable, in the former case Banks should move for insolvency of the borrowers under the Bankruptcy Code expected to be approved by Parliament shortly.
            Reply
            1. Y
              yousef
              Apr 29, 2016 at 1:19 pm
              A caste based reservation Policy is required for banks to give loans without collateral. Equal quota of NPA is needed for SC/ST/OBC. Parliament should immediately decalre reservation policy in loan giving. Financial status Equality is a must along with social equality. Cl injustice is compounded by caste injustice.
              Reply
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