MUMBAI, Nov 17: The banking system’s slippage to recovery and upgradation ratio has shot up to 257 as of March 2013 from 217 in March 2011 as banks have failed to implement efficient and speedy measures for recovering stressed assets, according to the Reserve Bank.
This increase in the slippages ratio was a tad above March 2012 when the slippage to recovery and upgradation ratio stood at 255.9.
“The extent to which banks are able to reduce NPAs through recovery efforts is deteriorating, which is evident by the increasing ratio of slippages to recovery and upgradation,” RBI deputy governor KC Chakrabarty told the annual banking event over the weekend.
The average slippages to recovery and upgradation ratio for public sector banks during the six-year period of 2007-13 stood at 220.6 as against 211.3 in the comparable period (2001-06) earlier, he said.
The average slippage to recovery and upgradation ratio for old private sector banks during 2007-13 stood at 202.7 as against 179.6 in 2001-07.
Average slippage to recovery and upgradation ratio for new private sector banks during 2007-13 stood at 418.7 as against 376.6 in 2001-07, the deputy governor said, adding the numbers for foreign banks stood at 430.3 and 350.6, respectively.
Chakrabarty, however, said the write-offs have contributed significantly in reducing NPAs.
Write-offs as a percentage of reduction in NPAs stood at 37.8 as on March 2013 for entire banking system as against 33.4 as on March 2012, 42.4 in March 2011 and 50.2 in March 2010.
“In the aftermath of the 2008 crisis, the slippage ratios rose, especially for foreign banks and new private sector banks,” the deputy governor said. (PTI)
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