Non-Performing Assets Of Banks Fell To Rs 5.70 Lakh Crore In December: Anurag Thakur

According to him, the occurrence of frauds, which resulted in high NPAs, has also witnessed a sharp decline as a result of steps taken by the government.

Non-performing assets of banks declined to Rs 5.70 lakh crore in December 2020 and the recovered amount stood at Rs 2.74 lakh crore following a slew of measures taken by the government, Union Minister Anurag Singh Thakur told Rajya Sabha on Tuesday. During Question Hour, the Minister of State for Finance also said the Insolvency and Bankruptcy Code (IBC) has helped in the recovery of NPA (Non-Performing Assets). "There has been a reduction in gross NPAs. The NPAs - which stood at Rs 8.96 lakh crore in 2018 - have reduced to Rs 5.70 lakh crore in December 2020. Recovery of Rs 2.74 lakh crore was also made," Thakur said while replying to a supplementary question in the Upper House. According to him, the occurrence of frauds, which resulted in high NPAs, has also witnessed a sharp decline as a result of steps taken by the government. The incidents of frauds reduced to 0.23 per cent from 1.01 per cent in 2013-14, the minister added. Further, Thakur said IBC brought by the government has resulted in major reforms and improving the debtor-creditor relation and better recovery rate. Under the present regime, banking has vastly improved, from phone banking to digital banking, which has resulted in transparency and accountability, he noted. In reply to a supplementary question, Thakur said 7 out of 12 public sector banks have taken up on priority efforts to introduce digital banking and added that this will result in competition with the private sector banks and benefit consumers with better products. The minister praised initiatives like the SBI Yono service.