NPA Decline in percentage of NPAs -- Sinha

NPA Decline in percentage of NPAs -- Sinha
PRESS TRUST OF INDIA

NEW DELHI, MAR 14: Finance Minister Yashwant Sinha today said the gross non-performing assets (NPAs) of public sector banks, in percentage terms, had declined from 17.84 per cent as on March 31, 1997 to 15.89 per cent as on March 1999, even though the net NPAs in absolute terms had shown a rise.

In a statement on the Calling Attention Notice made by CPI member Gurudas Das Gupta in the Rajya Sabha, Sinha said after stabilisation of identification norms and accounting of NPAs over a period, the NPA's have been coming down in percentage terms.

However, in absolute terms, the net NPAs during the period rose from Rs 20,285 crore to Rs 24,211 crore as on March 31, 1999, he said, adding the RBI, Central Government and Public Sector Banks had taken a number of steps not only to check NPAs but also for its recovery.

He added that a Credit Information Bureau was being set up to facilitate sharing of credit-related information on borrowers and potential borrowers for improving credit decisions.

The Finance Minister said to strengthen the debt recovery mechanism, an ordinance had been promulgated on January 17, this year, to amend the Recovery of Debts (due to banks) and Financial Institutions Act, 1993.

The ordinance, among other things, provides for more teeth to the Debt Recovery Tribunals and appointment of more than one recovery officer in a tribunal.