FM urges banks to cut down on bad assets

Posted By: Religare
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FM urges banks to cut down on bad assets
Finance minister Pranab Mukherjee has pointed out his worries over rising non-performing assets (NPAs) of banks. Public bank, SBI"s net profit dropped nearly 99% on higher provisioning in FY11. Other banks such as the Bank of India and the Bank of Baroda also experienced fresh loans turning into bad assets. He added that it is important for the banks to constantly monitor and bring down the NPA to the previous level.

Besides, Mukherjee has also added that the financial results of banks were good despite of poor NPAs as deposits advanced 15 per cent and credit growth rising a robust 21 per cent. Further, most of the banks, reported a net profit growth of 15-20 per cent.

On the other hand, the finance minister has commented on the inflation that, “Inflationary pressures persist because of higher global commodity prices and domestic demand-supply imbalances in several commodities."

Story first published: Monday, May 23, 2011, 9:30 [IST]
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