NPAs are high in corporate as well as small sector, says Chidambaram
Updated: Mar 06, 2014 12:55:10pm
New Delhi, Mar 6 (KNN) Non-performing assets (NPAs) for small industries have risen along with the large corporates, Finance Minister P Chidambaram has said pointing out that the banks have been told to focus on recovery.
"The biggest challenge facing the public sector banks is NPAs and asset quality...NPAs are high in large corporate sector as well as in the SSI and MSE sector," Chidambaram said yesterday while addressing a press conference here after reviewing the performance of public sector banks .
"We have told them (banks) to focus on recovery and banks are focusing on recovery," he said.
Reiterating that the biggest challenge facing the public sector banks was NPAs and asset quality, he said the quantum during 2013-14 is likely to be a little higher this fiscal.
The finance minister has asked the lenders to focus on the recovery of bad loans.
Chidambaram said the banks have recovered bad loans worth Rs 18,933 crore in April-December period of the current fiscal.
The combined NPAs of the public sector banks rose to Rs 2.36 lakh crore at the end of the second quarter of the current fiscal from Rs 1.83 lakh crore at the end of fiscal 2012-13.
Further, the Minister also said that the model code of conduct will not affect government functioning or restrain the RBI from awarding new bank licences.
Speaking about the bad loans of United Bank of India, he said the issue would be discussed separately with RBI Governor Raghuram Rajan on Friday.
Kolkata-based United Bank posted a net loss of Rs 1,238 crore in the three months ended December, during which its gross NPAs surged to Rs 8,546 crore from Rs 2,964 crore at the end of March last year.
Chidambaram said United Bank had managed to recover Rs 1,200 crore in January and February. (KNN/SD)
"The biggest challenge facing the public sector banks is NPAs and asset quality...NPAs are high in large corporate sector as well as in the SSI and MSE sector," Chidambaram said yesterday while addressing a press conference here after reviewing the performance of public sector banks .
"We have told them (banks) to focus on recovery and banks are focusing on recovery," he said.
Reiterating that the biggest challenge facing the public sector banks was NPAs and asset quality, he said the quantum during 2013-14 is likely to be a little higher this fiscal.
The finance minister has asked the lenders to focus on the recovery of bad loans.
Chidambaram said the banks have recovered bad loans worth Rs 18,933 crore in April-December period of the current fiscal.
The combined NPAs of the public sector banks rose to Rs 2.36 lakh crore at the end of the second quarter of the current fiscal from Rs 1.83 lakh crore at the end of fiscal 2012-13.
Further, the Minister also said that the model code of conduct will not affect government functioning or restrain the RBI from awarding new bank licences.
Speaking about the bad loans of United Bank of India, he said the issue would be discussed separately with RBI Governor Raghuram Rajan on Friday.
Kolkata-based United Bank posted a net loss of Rs 1,238 crore in the three months ended December, during which its gross NPAs surged to Rs 8,546 crore from Rs 2,964 crore at the end of March last year.
Chidambaram said United Bank had managed to recover Rs 1,200 crore in January and February. (KNN/SD)
Loading...
