Non-performing assets (NPAs) or bad loans of the banking sector came down from a high of Rs 10.36 trillion at the end of March 2018 to Rs 8.08 trillion at the end of September 2020 due to various initiative of the government, Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday.
As a result of the Asset Quality Review (AQR) and subsequent transparent recognition by banks, stressed accounts were reclassified as NPAs, and expected losses on stressed loans not provided for earlier under flexibility given to restructured loans were provided for, he said in a written reply.
Further, he said, all such restructuring stressed loans were withdrawn.
Primarily, as a result of transparent recognition of stressed assets as NPAs, gross NPAs of scheduled commercial banks as per the RBI data on global operations rose from Rs 3,23,464 crore as on March 31, 2015, to Rs 10,36,187 crore as of March 31, 2018, he said.
The government’s strategy of recognition, resolution, recapitalization, and reforms have resulted in the decline of NPAs by Rs 2,27,388 crore to Rs 8,08,799 crore as of September 30, 2020, he added.
Replying to another question, Thakur said government borrowings from the market increased by 57 per cent in Q1, 90 per cent in Q2, and 48 per cent in Q3 for completed quarters of 2020-21 as compared to 2019-20.