Banks have written off bad loans worth Rs 14.56 billion in the last nine financial years (since 2014-15), Parliament said on Monday.
Of the Rs 14,56,226 crore written off, loans to large industries and services accounted for Rs 7,40,968 crore.
In a written reply, Finance Minister Bhagwat Karad said that Scheduled Commercial Banks (SCBs) have recovered a total of Rs 2,04,668 crore of written-off loans, including corporate loans, from April 2014 to March 2023. To the Lok Sabha.
Loans written off during the financial year, excluding recovery of loans written off during the financial year (net write-off) in public sector banks, covered 2017-2018. in the financial year to 1.18 million crowns, which decreased. 0.91 lakh crore in 2021-22 and 0.84 lakh crore (RBI provisional data) in 2022-23, he said in another reply.
He said the net amortization of private sector bank loans was RBI 73,803 crore in the financial year 2022-23 (provisional RBI data).
The net amortization percentage of gross loans opened by private sector banks was 1.25 and 1.57 percent in the fiscal year 2017-2018 and 1.57 percent in the fiscal year 2022-2023 and 2 percent and 1.12 percent for public entities. at the same time.
He said the government and RBI have taken extensive steps to revive and reduce NPAs due to which the total balance of public broadcasters has come down from Rs 8.96 crore as on March 31, 2023, to Rs 4.28 crore as on March 31, 2018.
Talking about the various steps taken by the government, he said that the Securitization and Reconstruction of Financial Assets and Provision of Security Interests Act, 2002, is being amended to make it more effective.
The financial jurisdiction of Debt Recovery Tribunals (DRTs) has been increased from 10 million to 20 million rupees to enable DRTs to focus on high-value cases resulting in the recovery of banks and financial institutions, the minister said. He further said that National Asset Reconstruction Company Limited (NARCL) has been established as an active reconstruction company to resolve stressed assets worth over Rs 500 crore.
He said that the government has also approved the extension of the collateral extension of 30,600,000,00 of the guarantee to ensure security certificates to NarCl lending institutions to increase the stress of loan assets.
Responding to another question, Karad said the Board of State Bank of India (SBI) has approved up to Rs 50,000 crore in Basel III compliant AT-1 bonds in its meeting on June 9, 2023. An amount of Rs 20,000, Tier-2 bonds up to Rs 10,000, and infrastructure bonds up to Rs 20,000 from the bank in 2023-24. in the financial year.
According to SBI, the purpose of raising capital loans (AT-1 and Tier-2) is to replace existing capital loans maturing in FY 2023-24, further strengthen the bank's capital base and support asset growth, it said.
Banks are exempted from maintaining cash reserve ratio for long-term bonds and mandatory liquidity ratio for infrastructure sector loans, he said, adding that taking long-term infrastructure loans will help the bank manage assets better. In a separate reply, he said that the Pradhan Mantri Mudra Yojana (PMMY) was launched on April 8, 2015, and was being implemented across the country.
He said that as on June 30, 2023, over 42.20 crore loans worth Rs 24.34 crore have been sanctioned to borrowers under the scheme.