PSBs record decline in NPA recovery

| Updated: Aug 23, 2017 11:20 IST

New Delhi [India], Feb. 7 (ANI): Minister of State in the Ministry of Finance, Santosh Kumar Gangwar, revealed in Rajya Sabha on Tuesday that Public Sector Banks (PSB) recorded a moderate decline of Rs. 2,556 Crore in recovery of Non-Performing Assets (NPA). During FY 2015 and FY 2016 PSBs made total NPA recoveries of Rs.42, 542 Crore and Rs.39,986 Crore, respectively. As on September 2016, NPAs of PSBs stands at Rs.5, 89, 502 Crore, showing a growth rate of recovery of 11.82 percent. The Government has taken sector specific measures (Infrastructure, Power, Road, textiles, Steel etc.) where incidence of NPA is high. The Insolvency and Bankruptcy code (IBC) has been enacted and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve recovery of bank loans. Six new Debt Recovery Tribunals (DRTs) have been established for improving recovery. RBI has provided a number of tools in this regard, namely Corporate Debt Restructuring (CDR), Formation of Joint Lenders' Forum (JLF), Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Strategic Debt Restructuring Scheme (SDR) and Sustainable Structuring of Stressed Assets (S4A). (ANI)