Non Performing Assets (NPA)
Why in the news?
- According to the Ministry of Finance, banks have undertaken an aggregate recovery of Rs 10,16,617 crore during the last nine years.
- Wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from floating new ventures for five years.
- According to information shared by the Reserve Bank of India (RBI) in response to the Right to Information (RTI) query, during the closing year of March 2023, taking the total loan write-off by the banking sector to Rs 10.57 lakh crore (around $ 129 billion) in the last five years.
- Banks recovered a total of ₹10,16,617 crore (approximately $124 billion USD) during the last nine years through the recovery of non-performing assets (NPAs) and their reduction efforts.
- The outstanding amount by scheduled commercial banks (SCBs) to corporate company borrowers, classified as non-performing assets (NPA).
- “Comprehensive measures have been taken by the Government and RBI to recover and to reduce NPA, including those pertaining to corporate companies.which has enabled recovery of loans.