NPA of nationalised banks rises to Rs 73,038 crore in June

The nationalised banks include 20 banks excluding State Bank of India and its five associate banks.

“Banks are required to monitor their NPAs and take steps to bring them down through recovery or other channels,” he said.

RBI also monitors the NPA levels in banks,he said,adding the aspect is reviewed during Annual Financial Inspections of banks and monitored on an ongoing basis through regulatory returns submitted by banks and periodical meetings with banks.

The channels of recovery available to banks include recourse to Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002,Debt Recovery Tribunals,Lok Adalats etc.,he added.

The government has advised public sector banks to take a number of new initiatives to increase the pace of recovery and manage NPAs,he added.

The new initiatives included appointment of nodal officers for recovery,to conduct special drives for recovery of loss assets,to put in place early warning system,to replace system of post dated cheques with Electronic Clearance System and to proactively pursue the loan issues with state governments,he added.