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Govt’s initiatives helped banking sector to decrease NPAs: Anurag Thakur

Thakur said the government borrowings from market in FY 2020-21 jumped 57 per cent first quarter

SNS | New Delhi |

The non-performing assets (NPAs) reported by the banking sector decreased from a high of Rs 10.36 lakh crore at the end of March 2018 to Rs 8.08 lakh crore at the end of September 2020 due to various initiatives taken by the government, Minister of State for Finance Anurag Thakur informed the parliament on Tuesday.

Government’s streategy of recognition, resolution, recapitalisation and reforms have resulted in decline of NPAs by Rs 2,27,388 crore to Rs 8,08,799 crore as on September 30, 2020, the minister said.

In a written reply to the Rajya Sabha he said as a result of the Asset Quality Review (AQR) and subsequent transparent recognition by banks, stressed accounts were reclassified as NPAs and expected losses on stressed loans not provided for earlier under flexibility given to restructured loans were provided for.

Thakur added that such restructuring stressed loans were withdrawn.

Primarily, as a result of transparent recognition of stressed assets as NPAs, gross NPAs of scheduled commercial banks as per the RBI data on global operations rose from Rs 3,23,464 crore as on March 31, 2015 to Rs 10,36,187 crore as on March 31, 2018, he said.

Replying to another query, he said the government borrowings from market in FY 2020-21 jumped 57 per cent first quarter, followed by 90 per cent in second quarter, and 48 per cent in third quarter as compared to 2019-20.

As per the Union Budget 2021-22, the government borrowings for the current fiscal ending March are expected to hit Rs 12.80 lakh crore, 64 per cent higher than the Budget Estimate of Rs 7.8 lakh crore.