NEW DELHI: Non-performing assets (NPAs) or bad loans of the banking sector came down 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 initiative of the government, Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday.
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, he said in a written reply.
Further, he said, all such restructuring stressed loans were withdrawn.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.
Gvoernment’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, he added.
Replying to another question, Thakur said government borrowings from market increased by 57 per cent in Q 1, 90 per cent in Q 2 and 48 per cent in Q 3 for completed quarters of 2020-21 as compared to 2019-20.
As per the Revised Estimate (RE) in the Union Budget 2021-22, the government borrowing for the current fiscal ending March would be Rs 12.80 lakh crore which is 64 per cent higher than the Budget Estimate of Rs 7.8 lakh crore. (AGENCIES)
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