New Delhi. In the year 2017-18, when the level of bad loans i.e. Non-Performing Assets (NPAs) in the Indian banking sector reached 10 percent (in proportion to the total loans distributed by the banks), many domestic and foreign financial agencies started criticizing Indian banking sector. Started reciting the mercy of. But now the situation is completely under control. The level of net NPA of all the big banks of the country has come down to below one percent. Can NPA increase again? The figures presented by the government in the House on Monday also indicate that the loan recovery system is working properly. Is working. There is no possibility of the NPA problem raising its head again in the near future.
On behalf of the Finance Ministry, it has been told in the Lok Sabha that in the last five years, an amount of Rs 6,82,286 crore has been recovered from the defaulters, which has played an important role in bringing down the level of NPA. Minister of State for Finance Pankaj Choudhary said. In a written reply to a question, it has been told that “In the last financial year 2023-24, Indian banks have written off a total amount of Rs 1,70,107 crore. Whereas if we talk about the last three financial years, this amount is Rs 5,53,057 crore. He clarified that the outstanding loan amount of banks is not written off at the government level but this step is taken at the level of banks. Also, write off does not mean that the loan will not be recovered from the said account holders.
Banks continue the process of loan recovery. Also watch this video on how banks' NPA is reducing. Remember that only a very small part of the outstanding loan amount that banks write off is recovered. In the last monsoon session itself, the Finance Ministry had told in the Rajya Sabha that out of the amount written off in the last five years, only 18.70 percent has been succeeded in recovering it. In recent weeks, the country's chief ministers If we look at the financial results of banks, it is clearly visible that whether it is due to loan write-off or better implementation of debt management, their NPA level is under control to a great extent.
The latest result of State Bank of India shows that their net NPA level has come down to 0.58 percent in the quarter ending September 2024, PNB to 0.48 percent in the same period, private sector HDFC Bank to 0.41 percent, ICICI to 0.42 percent. What is more, the record of most of the majors also shows that the level of NPA has been continuously decreasing for the last five quarters.
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