Finance

1463 NPA Accounts With Rs. 100 Crore Each In PSU Banks

The finance ministry of India has reflected the data of 1,463 entities account having bad loans of more than Rs. 100 crore in 21 public sector banks. Of which, the State Bank of India had more than 265 bank accounts with bad loans of more than Rs. 100 crore each. This has resulted into massive Rs. 77,538 crore in bad debts.

In the nationalized banks list, Punjab National Bank topped the September quarter chart with more than 143 non-performing asset accounts that are carrying more than Rs. 100 crore each. They collectively own the Delhi-based bank with Rs. 45,973 crore. The Punjab National Bank was followed by the Canara Bank with the maximum number of accounts with Non-performing assets of more than Rs. 100 crore. Apart from the nationalized banks, there are smaller PSU lenders like the Union Bank, which had 79 NPA accounts. Apart from these banks, Oriental bank had 68 accounts with non-performing assets, while UCO bank has 62 accounts that are having non-performing assets. This data has been revealed by the finance ministry.

The Reserve Bank of India has issued directions to certain banks for referring 12 accounts with fund and non-fund based outstanding amount which is greater than 5000 crore and which has 60% or more classified of NPA on March 31, 2016. The rise of non-performing assets has curled the lending capacity of the state-owned bank, as they had to make extra provisions for bad loans. In order to strengthen them, the government has come up with the Rs. 2.12 lakh crore capitalization plan that had already been given a nod in the Parliament. With the help of this plan, the government will be able to pump in Rs. 80,000 crore through the recapitalization of bonds in the current fiscal ending in March 2018.