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Banks have undertaken an aggregate recovery of Rs 10,16,617 crore during the last nine years through measures taken to recover and reduce non-performing assets, the finance ministry has stated in Parliament. The outstanding amount by scheduled commercial banks (SCBs) to corporate company borrowers, classified as non-performing assets (NPA) and having amount outstanding of Rs 1,000 crore or more stood at Rs 1,03,975 crore as on March 31, 2023, Minister of State for Finance Bhagwat Kisanrao Karad said in a written reply to a question in Lok Sabha on Monday.
“Comprehensive measures have been taken by the Government and RBI to recover and to reduce NPAs, including those pertaining to corporate companies, which has enabled an aggregate recovery of Rs. 10,16,617 crore (RBI provisional data for FY 2022-23) by SCBs during the last nine financial years,” the reply said listing out measures such as changes in Insolvency and Bankruptcy Code, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, setting up of National Asset Reconstruction Company Limited and creation of stressed asset management verticals by SCBs.
Wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from floating new ventures for five years. Wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise funds, the reply said.
The Indian Express had reported Monday that banks wrote off bad loans worth over Rs 2.09 lakh crore (around US $ 25.50 billion) during the year ended March 2023, taking the total loan write-off by the banking sector to Rs 10.57 lakh crore (around $ 129 billion) in the last five years, as per the information shared by the Reserve Bank of India (RBI) in a Right to Information (RTI) reply.
