Non-performing assets (NPAs) or bad loans of the banking sector came down from a high of ₹10.36 lakh crore at the end of March 2018 to ₹8.08 lakh crore at the end of September 2020 due to various initiative of the government, Minister of State for Finance Anurag Thakur informed the Rajya Sabha on Tuesday.
As a result of the Asset Quality Review (AQR) and subsequent transparent recognition by banks, stressed accounts were reclassified as NPAs and expected losses on stressed loans not provided for earlier under flexibility given to restructured loans were provided for, he said in a written reply.
Further, he said, all such restructuring stressed loans were withdrawn.
Primarily, as a result of transparent recognition of stressed assets as NPAs, gross NPAs of scheduled commercial banks as per the RBI data on global operations rose from ₹3,23,464 crore as on March 31, 2015 to ₹10,36,187 crore as on March 31, 2018, he said.
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