Public sector banks’ gross non-performing assets (NPAs) (PSBs) amounted to ₹3.16 lakh crore as of September 30, 2024. This represents 3.09% of the total outstanding loans, as disclosed in Parliament on Tuesday. Public sector banks have written off loans amounting to Rs 42,000 crore during the first six months of the current fiscal year, Parliament was informed on Monday.
Breakdown of NPAs Across Banks
Minister of State for Finance Pankaj Chaudhary, in response to a question in the Rajya Sabha, presented provisional data from the Reserve Bank of India (RBI). According to the data:
- Gross NPAs of public sector banks stood at ₹3,16,331 crore, representing 3.09% of outstanding loans.
- Private sector banks reported gross NPAs of ₹1,34,339 crore, representing a lower percentage of 1.86% of outstanding loans.
The data highlights a continued focus on addressing NPAs in the banking system, particularly within PSBs, which traditionally have higher exposure to stressed assets.
Wilful Defaulters and Large Loan Defaults
Chaudhary also revealed details about wilful defaulters. As of March 31, 2024, a total of 580 unique borrowers (excluding individuals and overseas entities), each with loans exceeding ₹50 crore, were categorized as wilful defaulters by Scheduled Commercial Banks. Wilful defaulters are borrowers who intentionally avoid repayment despite having the capacity to repay or divert funds for purposes other than intended.
Resolution Efforts Under Insolvency and Bankruptcy Code (IBC)
Chaudhary provided insights into recoveries made through the Insolvency and Bankruptcy Code (IBC). Up to September 30, 2024:
- Resolution plans were approved in 1,068 corporate insolvency resolution processes.
- These resolutions resulted in a recovery of ₹3.55 lakh crore for creditors, including banks.
Financial Impact of Resolutions
- The total claims by creditors in these cases amounted to ₹11.45 lakh crore.
- The liquidation value of these assets was pegged at ₹2.21 lakh crore, indicating that recoveries exceeded the liquidation value, showcasing the effectiveness of the IBC process in some cases.
Loan Write-Offs
Public sector banks have written off loans amounting to Rs 42,000 crore during the first six months of the current fiscal year, Parliament was informed on Monday. Leading the list, the State Bank of India (SBI) wrote off Rs 8,312 crore, followed by Punjab National Bank with Rs 8,061 crore, Union Bank of India with Rs 6,344 crore, and Bank of Baroda with Rs 5,925 crore during the April-September period.
| Bank | Write Off (Rs. crore) |
|---|---|
| SBI | 8312 |
| PNB | 8061 |
| Union Bank | 6344 |
| Bank of Baroda | 5925 |
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