Huge Loan NPA in Public Sector Banks, Check NPA and Loan Waive Off (Hair Cut) Data

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