Increase the pace of recovery and manage NPAs: Fin Ministry

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Increase the pace of recovery and manage NPAs: Fin Ministry
The Gross Non-Performing Assets (GNPAs) of nationalized banks as on June 2012 were Rs.73,038 crore which amount to 2.94% of Gross Advances, Minister of State for Finance, Shri Namo Narain Meena said.

Banks are required to monitor their NPAs and take steps to bring them down through recovery/other channels, he added.

RBI also monitors the NPA levels in banks, the aspect is reviewed during Annual Financial Inspections of banks and monitored on an ongoing basis through regulatory returns submitted by banks and periodical meetings with banks.

The Government has directed Public Sector Banks to take a number of new initiatives to increase the pace of recovery and manage NPAs, which include appointment of Nodal officers for recovery, to conduct special drives for recovery of loss assets, to put in place early warning system.

Replace system of post dated cheques with Electronic Clearance System (ECS) and to proactively pursue the loan issues with State Governments.

The nationalised banks include Canara Bank, Corporation Bank, Vijaya bank, PNB, Union Bank of India and few others.

Read more about: npa, banks, rbi
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