NPA recovery reduced by 23%; Government banks loans are the most stuck these days
NPA Recovery Fall, Bank NPA: Finance Minister Nirmala Sitharaman gave a detailed reply about NPA and its recovery in Parliament on Monday. It was revealed that there has been a 23 percent decline in recovery.
These days the bank loan recovery is getting more difficult and increasing in number. Government figures are also telling a worrying picture in this matter. According to government data, there was a 23% decline in the recovery of non-performing assets (NPAs) during the last financial year. NPAs worth Rs 1,23,299 crore were recovered in the financial year ended March 31, 2024. Before that, Rs 1,59,787 crore was recovered in the financial year 2022-23.
NPA stands for Non-Performing Assets. It means a loan that has become bad or stuck. In cases of loans, if installments are not paid by a fixed time, the banks put it in NPA. Normally its limit is 90 days. If a borrower does not deposit the loan installments for 90 continuous days, then the bank puts that loan in NPA. In simple terminology, NPA can also be referred to as a loan for which the bank also holds little hope of recovery.
Finance Minister Nirmala Sitharaman shared the figures of NPA and its recovery in Parliament on Monday. During the winter session of Parliament, which kick-started on 25th November, questions concerning NPA and its recoveries have been asked to the government. According to the information given by the Finance Minister, even though there was a decline in the recovery of NPA in the financial year 2023-24, but before that the recovery was accelerating for two consecutive financial years. In the financial year 2020-21, the figure of NPA recovery was Rs 1,14,368 crore, and in 2021-22 it was Rs 1,37,456 crore.
Now, if we take a look at the banks, then regarding NPA, government banks are far ahead. According to the data as of March 31, 2024, SBI has the highest gross NPA of Rs 84,276 crore. SBI is also the largest bank in the country in terms of the number of customers. Following that, with a gross NPA figure of Rs 56,343 crore, Punjab National Bank is in the second position. Currently, only these two banks have a gross NPA above Rs 50 thousand crore. In the same manner, the gross NPA figure of the Union Bank of India is Rs 43,098 crore. So, the gross NPA of Canara Bank is Rs 40,605 crore.
The state of affairs is somewhat better for private-sector banks. HDFC Bank has the highest NPA among private-sector banks. Its gross NPA figure stands at Rs 31,057 crore. It has now become the biggest bank in the country by leaving SBI behind with respect to market cap. Gross NPA for the second largest private bank ICICI Bank is Rs 27,314 crore.
