New Delhi: The Indian banks’ Non Performing Assets stood at Rs 3,00,611 crore as on December 2014, government told Lok Sabha Friday, attributing the increase of NPAs to sluggishness in growth.
A sum of Rs 38,209, of the total NPAs, Rs 2,62,402 crore belonged to nationalised banks, belonged to private sector banks, Minister of State for Finance Jayant Sinha said during question hour. He said the total gross advances of nationalised banks as on December 2014 stood at Rs 46,49,843 crore while the total advances of private sector banks stood at Rs 16,77,875 crore.
The Minister cited stalled projects, sluggishness in the domestic growth in the last few years and slowdown in the global economy as the key reasons for the increase of NPAs. In case where staff connivance is noticed alongwith borrower, banks take action as per the Reserve Bank of India circular on frauds.
He said, “As per master circular, banks conduct enquiry to fix up staff accountability and impose minor or major penalties depending on merit of each case. In the period from April 2011-December 2014, as per the information provided by 20 major PSU banks, after conducting enquiries into the staff lapses in NPA cases, 470 employees were dismissed and major and minor penalties were imposed on 5177 and 5811 employees respectively.”
