Connect with Us
In the last two decades public sector banks have been burdened with large Non-Performing Assets of Private Corporate Companies. In this article, we will have a look at the NPA and Hair Cut Data of Banks.
| As on 31st March | Gross NPA (Rs.cr) |
|---|---|
| 2012 | 1,17,000 |
| 2013 | 1,64,461 |
| 2014 | 2,16,739 |
| 2015 | 2,78,877 |
| 2016 | 5,39,955 |
| 2017 | 6,84,732 |
| 2018 | 8,95,601 |
| 2019 | 7,39,554 |
| 2020 | 6,78,318 |
| 2021 | 6,16,615 |
| 2022 | 5,42,173 |
| 2023 | 4,28,199 |
| 2024 | 3,48,457 |
| 2025 | 2,90,347 |
Bank Loan Haircuts
Banks have provided a huge haircut to private corporate companies who have defaulted on the loan. Haircut upto 95% have been provided to companies. Loan of upto Rs.4800 crores has been settled by the banks for just Rs.320 crores.
(Rs. in Crores)
| Borrower | Loan Amount | Settled and resolved for | Haircut for Banks in % | Purchased by |
|---|---|---|---|---|
| Essar | 54000 | 42000 | 23 | Arcelor Mittal |
| Bhushan Steels | 57000 | 35000 | 38 | Tatas |
| Jyothi Structures | 8000 | 3600 | 55 | Sharad Sanghi |
| DHFL | 91000 | 37000 | 60 | Piramal |
| Bhushan Power | 48000 | 19000 | 60 | JSW |
| Electrosteel Steels | 14000 | 5000 | 62 | Vedanta |
| Monnet Ispat | 11500 | 2800 | 75 | JSW |
| Amtek | 13500 | 2700 | 80 | DVIL |
| Alok Industries | 30000 | 5000 | 83 | Reliance + JM Fin |
| Lanco Infra | 47000 | 5300 | 88 | Kalyan Group |
| Videocon | 46000 | 2900 | 94 | Vedanta |
| ABC Shipyard | 22000 | 1200 | 95 | Liquidation |
| Sivasankaran Industries | 4800 | 320 | 95 | Father-in-law |
Bank NPA Provisioning
Due to these big loan NPAs, banks provision the loss and due to this provisioning, net profit of banks decreases.
(Rs. in crores)
| Year | Gross Operating Profit | Provisions for bad loans, etc | Net profit / Loss after provisions |
|---|---|---|---|
| 2008-09 | 66,604 | 32,231 | 34,373 |
| 2009-10 | 76,945 | 37,603 | 39,342 |
| 2010-11 | 99,982 | 55,080 | 44,902 |
| 2011-12 | 1,16,344 | 66,830 | 49,514 |
| 2012-13 | 1,21,839 | 71,256 | 50,583 |
| 2013-14 | 1,27,653 | 90,633 | 37,019 |
Advertisement
Advertisement
Just check..all loan account above 5 crore..not one but all accounts are green fabricated…to look always green
But providing every year increasing every loan portfolio above 5 cr.
Why …because all loan above 5 cr are not true to govt. For not paying personal taxes of income generation rs20 lac only income shown by them by using software only working for banks.they bank interest, insurance,bank processing charges.
And continuous to pay next 5 to 15 years than become NPA.
Faults..lies in processing of loan cases year to year ,they become so fatty to become boom blast as NPA ac. Eatup huge profit earned by banks.
Only remedy to higher experts to tell in how years borrower ac will NPA.
Like I have was trained for this intuition.
Why loan amount above Rs.5.00 cr? It is applicable for all. In fact the actual modus operandi in many cases is to sanction and disburse such credit proposals where OTS is predecided at proposal level only. Such type of loans are non viable, non operating, no activity with no end use verification and pro npa at the sanctioning level itself and get settled below ledger balance with huge loss to public funds.