NPAS OF PUBLIC SECTOR BANKS UP 30% IN 2009-10

                                                                                                           (IN RS. CR.)

N.P.A. POSITION OF PSBs
	AMOUNT OUSTANDING AT END
	2007-08	2008-09	2009-10
Gross NPAs	39749	44039	57301
Total gross advances	1,696,333	2,103,763	2,519,331
Gross NPAs to Gross Advances (%)	2.34	2.09	2.27

The gross non-performing assets (NPAs) of public sector banks have increased by 30.1 per cent to Rs 57,301 crore in 2009-10 from Rs 44,039 crore in 2008-09.

The gross NPAs as a percentage of gross advances also jumped from 2.09 per cent in 2008-09 to 2.27 per cent in 2009-10.

The Minister of State for Finance, Mr Namo Narain Meena, told the Lok Sabha in a written reply that the RBI and the Government have already taken many steps to improve the health of the financial sector, to reduce the NPAs, to improve the asset quality of banks and to create a good recovery climate.

He said these include prescribing prudential norms for provisioning and classification of NPAs, guidelines for prevention of slippages, corporate debt restructuring and other restructuring schemes as well as one-time settlement schemes.

Besides the enactment of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the Credit Information Companies (Regulation) Act, 2005 and the Recovery of Debts due to Banks and Financial Institutions Act, 1993 also helps in this regard, he said.

SOURCE: http://www.thehindubusinessline.com/2010/12/05/stories/2010120552380300.htm