Public sector banks have written off loans worth Rs. 1,06,170 crore in the last five years, Parliament was informed on Tuesday. “The RBI data reporting system does not collate data on the number of account holder having more than Rs. 1 crore, whose loans were written off,” Minister of State for Finance Jayant Sinha said in written reply to the Rajya Sabha. The amount of bad loans written off or restructured by the PSU banks has more than doubled in the last three years ending March 2014 to Rs. 42,447 crore. The rise in bad loans is being attributed to slowdown in the economy which slipped to below five per cent in the two consecutive financial years — 2012-13 and 2013-14. The loans written off/compromised by PSU banks soared from Rs. 20,752 crore in 2011-12 to Rs. 32,992 crore in 2012-13 and further to Rs. 42,447 crore in 2013-14, as per RBI data. In a separate reply, Mr. Sinha said, “a total of 1,600 wilful defaulters (non-suit filed accounts) of Rs. 25 lakh and above as on March 31, 2014, have been declared by the banks.” A robust mechanism for early detection of signs of distress, prompt restructuring in the case of all viable accounts, taking to recourse to legal mechanisms like Lok Adalats etc are methods of recovery of loans, he said. RBI has issued instructions to banks to review slippages in asset classification in the borrower accounts with outstanding Rs. 5 crore and above by the board of directors of the bank and review NPA accounts which have registered recoveries of Rs. 1 crore and above, he said. The government has advised public sector banks to constitute a board level committee for monitoring of NPAs and recovery, he added Source The HinduWhen slowdown of the ecnomy is responsible for bad loans, write off then why managers are compelled to commit suicides. Those executives should introspect what good they have done to whom. Whether they have tought lessons to other managers, whether any of the further loans/advanced will not slip into npa, can any cmd or RBI govern sanction any loan with a confirm note that this particilar loan will not become bad under any circumstances. No body can rule out this . Today Mr.x has is victim of this cruel bad system tomorrow will be Mr.Y next Mr.z and the show will go on. Lets help the bank to plat role of yamdoot on behalf of yamraj in the shape of this cruel system. Lets pray god to give happiness to the victims of our friends suicide which is virtually a murder by the system which can not be hanged by any court.
Posted on: Sat, 27 Dec 2014 12:11:54 +0000
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