New Delhi: Public Sector Banks have recovered Rs 6. 42 lakh crore of non-performing assets and written-off loans since FY2014-15 and filed suits against 98. 5% of willful defaulters.
As per government data, from FY16 to FY21, the government has pumped in Rs 3. 36 lakh crore of capital in the public sector banks (PSBs) while the banks themselves have raised an additional Rs 2. 99 lakh crore from the markets. However, the state-run bank provision coverage ratio, a measure that shows the amount kept aside by lenders to cover non-performing assets (NPAs), has improved to 86. 9% at the end of March 2022 from 46% at the end of March 2015, the data demonstrated.
Since FY15, the PSBs have recovered Rs 5. 17 lakh crore in dud loans and Rs 1. 24 lakh crore in written-off accounts. The gross NPA ratio of state-run banks has dropped from 14. 6% on March 31, 2018, to 7. 4% on March 31, 2022, while the net NPA ratio fell from 8% to 2% over this period. Stressed assets came down to 8.7% from 15. 3%. ‘Banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available,’ a senior government official told the Economic times.
The occurrence of fraud proportional to the gross advances of PSBs fell from a high of 1. 32% during the financial year 2013-14 to 0. 05% during the financial year 2021-22. The financial daily quoted the government official as saying, ‘The improved detection and reporting accompanied with the comprehensive steps taken to check frauds have resulted in a decline in the occurrence of such frauds.’ Out of 12,265 designated willful defaulters, state-run lenders have filed suits against 12,076 (98. 5%), FIRs (first information report) against 40. 2% and SARFAESI action initiated against 75. 5%, the ET report said.
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