Not such a good news! Bad loans for public sector bank surges

It seems public sector banks is in pits! The bad loans of the state-run banks have increased to Rs 2.67 lakh crore at the end of March 2015 from Rs 2.16 lakh crore a year ago. According to a report by PTI, the gross NPA Ratio of the public sector banks has surged to 5.43% at the end of FY 15 as compared to 4.72% at the end of FY14

“NPAs of (PSU) banks for the system as a whole is increasing continuously," Minister of State for Finance Jayant Sinha informed Parliament today.

In a reply to another question, Sinha said “the government, RBI and the PSBs are all concerned with timely recovery of NPAs as it affects their profitability and capital adequacy.”

He pointed out that during 2014-15, the public sector banks have recovered Rs 41,236 crore as compared to Rs 33,698 crore in the previous fiscal.

He also added that several recovery mechanisms are in place in order to ensure corporate loan repayments are made to the banks. These include Debt Recovery Tribunals ( DRTs), Board for Industrial and Financial Reconstruction (BIFR), Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) and Central Repository of Information of Large Credits ( CRILC).