Finance Ministry identifies five banks requiring special focus to arrest NPAs
The finance ministry has identified five banks - Bank of India, IDBI, Indian Overseas Bank, Bank of Maharashtra, UCO Bank, and United Bank of India - which require special focus to arrest their bad loans.
As per the finance ministry data, the slippages in these banks continue to be higher than the reduction and there has been an increase in impaired assets.
"These banks require special focus and discussions were held with these banks on how to step up the recovery efforts," said a finance ministry official.
As per the finance ministry data, the gross non-performing assets (NPAs) of Bank of India increased Rs 15,767 crore to Rs 29,894 crore since September 2014.
While the country's largest bank the State Bank of India continues to have the highest gross NPAs at Rs 56,834 crore at the end of September 2015, it managed to bring it down by Rs 3,878 crore since September 2014.
Indian Overseas Bank, which is currently under the "prompt corrective action" of Reserve Bank of India, has seen its gross NPAs rising Rs 6,090 crore to Rs 19,424 crore at the end of September 2015. The prompt corrective action is initiated when the RBI is of view that capital base of a bank is eroding.
In case of IDBI Bank, where the government is looking to dilute its stake to 49%, the gross NPAs stood at Rs 14,758 crore at the end of September 2015.
On Monday, Finance Minister Arun Jaitley had asked state-run banks to clean-up their balance sheets of non-performing assets, and said that the government was willing to take the necessary policy corrective measures to help them.
The finance minister had reviewed the performance of state-run banks in the quarter to September. Gross NPAs of state-run banks rose 25.19% year-on-year to Rs 3.14 lakh crore in September 2015, constituting 5.64% of total advances.
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