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'PSB NPAs decline to Rs 8.6L cr in Apr-Dec FY19'

NEW DELHI: Bad loans of public sector banks declined by greater than Rs 31,000 crore to Rs 8,64,433 crore within the first 9 months of the present fiscal as compared to end of March 2018, the federal government said on Friday.

Non-performing assets (NPAs) or unhealthy loans of the banks stood at Rs 8,95,601 crore at the end of previous fiscal, minister of state for finance Shiv Pratap Shukla said in a written respond to Lok Sabha.

Bad loans fell to Rs 8,75,619 crore as on June 2018 and extra to Rs 8,64,433 crore in December 2018 (as in step with provisional information), he said.

Shukla said at this time the federal government isn't taking into consideration any proposal for privatisation of PSBs.

He said unhealthy loans fell by Rs 31,168 crore in April-December 2018-19 compared to NPAs price Rs 8,95,601 crore at March-end 2018.

NPAs declined on account of the federal government's 4Rs technique of recognition, solution, recapitalisation and reforms, Shukla said.

"As in step with RBI inputs, the main causes for spurt in stressed out assets have been...aggressive lending practices, wilful default or mortgage frauds or corruption in some instances, and economic slowdown.

"Asset Quality Review (AQR) initiated in 2015 for blank and entirely provisioned bank balance-sheets published prime incidence of NPAs," he said.

As a results of AQR and next clear reputation by PSBs, stressed out accounts have been reclassified as NPAs and expected losses on stressed out loans, no longer equipped for previous underneath flexibility given to restructured loans, have been equipped for, he said.

During the fourth quarter of 2017-18, all such schemes for restructuring stressed out loans have been withdrawn, he said.

"Primarily on account of clear reputation of stressed out assets as NPAs, gross NPAs of PSBs as in step with RBI information on global operations, greater from Rs 2,27,264 crore as on March 31, 2014, to Rs 2,79,zero16 crore on March 31, 2015, Rs 5,39,968 crore on March 31, 2016 and Rs 6,84,732 crore as on March 31, 2017," he said.

With more than a few steps taken by the federal government including the initiation of clear reputation in 2015-16 until December 2018, PSBs have successfully recovered an amount of Rs three,33,491 crore, he said.

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