From FY 2016 to FY 2011, the government has infused Rs 3.36 lakh crore of capital into PSBs, while banks have raised an additional Rs 2.99 lakh crore from themselves. Market,
The provision coverage ratio of PSBs, a measure of health that captures the amount set aside to cover bad loans, has increased from 46% at the end of March 2022 to 86.9% at the end of March 2015.
Since FY15, PSBs have recovered ₹ 5.17 lakh crore in non-performing assets (NPAs) and ₹ 1.24 lakh crore in written off accounts.
The Gross NPA Ratio of PSBs declined from 14.6% on March 31, 2018 to 7.4% as on March 31, 2022, while the Net NPA Ratio declined from 8% to 2% during the period. Stressed assets have come down from 15.3% to 8.7%.
A senior government official said, “Banks are continuing with the recovery action initiated in the written off accounts through various available recovery mechanisms.”
These include recovery cases in civil courts or debt recovery tribunalAction under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 National Company Law Tribunal Under the Insolvency and Bankruptcy Code, 2016 or through negotiation/ settlement and sale of NPAs.
The incidence of fraud as a proportion of the gross advances of PSBs declined from a peak of 1.32% during FY 2013-14 to 0.05% during FY 2021-22.
“Instances of such frauds have come down as a result of better detection and reporting coupled with comprehensive steps taken to check frauds,” the official quoted above said.
Of the 12,265 named willful defaulters as on March 31, 2022, cases have been filed against 12,076 (98.5%), FIRs have been lodged against 40.2% and SARFAESI proceedings have been initiated against 75.5%.
“The government has provided a conducive business environment and healthy competition, which has encouraged private sector banks to flourish in the country,” the official said. % in 2021-22%.