NPAs of state-run banks rise over 51 per cent to Rs1,03,891 crore
20 March 2012
Total non-performing assets (NPAs) or bad loans of public sector banks in India jumped over 51 per cent to Rs1,03,891 crore in 2011 amidst tighter credit and high lending rates.
Gross NPAs of public sector banks have increased to Rs103,891.27 crore as of December 2011, from Rs68,597.09 crore at end-December 2010, minister of state for finance Namo Narain Meena said.
He was replying to supplementaries during question hour in the Rajya Sabha.
The increase in NPAs, though marginal in terms of percentage increase, it seemed also quite unusual, he said, adding, ''Banks have been instructed to see how NPAs can be reduced."
While the best known culprit in this is the aviation industry, Meena said loans to sectors like power, steel and the MSMEs have also gone bad amidst a slowing of industrial activity.
The aviation sector, he said, alone accounted for Rs39,000 crore of outstanding debt, of which Rs741 crore was NPA with banks.