Public sector banks have written off bad loans worth Rs 1.20 lakh crore, an amount that is nearly one-and-a-half times more than their total losses posted in 2017-18, according to official data.<\/p>\n
This is a double whammy for the struggling PSBs as they had massive write-offs as well as huge losses in the last financial year.<\/p>\n
This is for the first time in a decade that banks have made huge write-offs of bad loans along with booking of hefty losses. Till 2016-17, 21 state-owned banks made combined profit while in 2017-18, they posted a staggering loss of Rs 85,370 crore, data shows.<\/p>\n
During 2016-17, PSU banks wrote off non-performing assets worth Rs 81,683 crore as against combined net profit of Rs 473.72 crore.<\/p>\n
SBI alone has written off bad loans of Rs 40,196 crore, nearly 25% of the total write-offs during 2017-18. This was followed by Canara Bank , Punjab National Bank and Bank of Baroda .<\/p>\n
As per the data provided by rating agency ICRA, Indian Overseas Bank has written of NPAs worth Rs 10,307 crore, followed by Bank of India, IDBI Bank and Allahabad Bank . These banks along with 7 others come under Prompt Corrective Action framework of RBI.<\/p>\n
As per government data, banks\u2019 write-offs stood at Rs 34,409 crore in 2013-14. The figure has jumped nearly four-fold in five years. In 2014-15, the banks wrote off Rs 49,018 crore ; Rs 57,585 crore in 2015-16, Rs 81,683 crore in 2016-17 and hitting a record high of Rs 1.20 lakh crore (provisional) in 2017-18.<\/p>\n
Write-off in banking parlance means that the bank has made 100% provision from its earning against that account. Following this, NPA is no longer part of its balance sheet.<\/p>\n
Indian banking sector is grappling with mounting NPAs and host of scams and frauds. NPA in the banking sector stood at Rs 8.31 lakh crore as of December 2017.<\/p>\n
Weak financials due to mounting bad loans have already pushed 11 banks, out of 21 , under the Prompt Corrective Action framework of RBI.<\/p>\n
The recent tight prudential norms released by RBI on February 12 have added to the NPA woes.<\/p>\n
Interim Finance Minister Piyush Goyal has announced setting up of a committee to give recommendations in two weeks on formation of an Asset Reconstruction Company (ARC) for faster resolution of stressed accounts.<\/p>\n","protected":false},"excerpt":{"rendered":"
Public sector banks have written off bad loans worth Rs 1.20 lakh crore, an amount that is nearly one-and-a-half times more than their total losses posted in 2017-18, according to official data. This is a double whammy for the struggling PSBs as they had massive write-offs as well as huge losses in the last financial […]<\/p>\n","protected":false},"author":1,"featured_media":34307,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-34306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/34306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=34306"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/34306\/revisions"}],"predecessor-version":[{"id":34308,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/34306\/revisions\/34308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/34307"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=34306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=34306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=34306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}