The Non-Performing Assets (NPA) or Bad Debts of the banking sector fell from a high of Rs 10.36 trillion at the end of March 2018 to Rs 8.08 trillion at the end of September 2020 due to various government initiatives, Minister of State Finance Anurag Thakur briefed the Rajya Sabha on Tuesday.
As a result of Asset Quality Review (AQR) and subsequent transparent recognition by banks, stressed accounts have been reclassified to NPA and expected losses on stressed loans not previously foreseen under the flexibility given to restructured loans were planned, he said in a written response. .
Also, he said, all those stressed restructuring loans have been withdrawn.
Primarily, due to the transparent recognition of stressed assets as NPAs, gross scheduled commercial bank NPAs, according to RBI Global Operations data, fell from Rs 3,23,464 crore as of March 31, 2015 to Rs 10 ,36,187 crore in March. 31, 2018, he says.
The recognition, resolution, recapitalization and reforms strategy of the government led to a decline in NPAs from Rs 2,27,388 crore to Rs 8,08,799 crore as of September 30, 2020, he added.
In response to another question, Thakur said government borrowing in the market increased 57% in the first quarter, 90% in the second quarter and 48% in the third quarter for the quarters ended of 2020-21 compared to to 2019-20.
According to the Revised Estimate (RE) of the Union Budget 2021-22, government borrowing for the current fiscal year ending March would be Rs 12.80 trillion, 64% higher than the budget estimate of 7.8 trillion rupees.