[MTC Global] Increasing Bad loans in the banking sector in India

Dear friends,

Good morning.

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BAD LOANS

 'At a time when the Government is trying their best to push through their various efforts and proposals to implement banking sector reforms like privatisation, mergers, etc., what is really required today is to address and tackle the problem of alarming increase in the bad loans in the Banks.  The so called reform measures recommended by Committee after Committee are retrograde and regressive but recovery of the huge bad loans will alone make our Banks more viable, vibrant and effective.

 In order to highlight this issue, AIBEA and AIBOA have decided to observe an exclusive All India Day on 25^th September, 2014.

 

The following figures will reveal how alarmingly the bad loans in the Banks are increasing.

 

31.03.2008	39,030 crores
31.03.2009	44,954 crores
31.03.2010	59,927 crores
31.03.2011	74,664 crores
31-03-2012	117,000 crores
31-3-2013	1,64,461 crores
30-9-2013	2,36,000 crores
31-3-2014	2,50,000 crores

 

                                                                      Fresh Bad Loans - Rs. 4,95,000 crores in 7 years in PSBs

Fresh/new NPAs during 2009-10	44,818 Crores
Fresh/new NPAs during 2010-11	58,226 Crores
Fresh/new NPAs during 2012-13	92,808 Crores
Fresh/new NPAs during 2012-13	1,19,613 Crores
Fresh bad loans in the last 4 years (2009 to 2013 )	3,15,465 Crores
Fresh bad loans in the last 7 years (2007 to 2013 )	4,94,836 Crores

 

 

Bad Loans restructured  & shown as good loans (June 2014)	Rs. 2,51,000 cr
Fresh Bad loans in the last 7 years	Rs. 4,95,000 cr
Profits adjusted for provisions towards bad loans (2008 to 13)	Rs. 1,40,000 cr
Bad loans written off in the last 13 years	Rs. 2,04,000 cr

 

 

                                                 RESTRUCTURING OF LOANS & SALE OF BAD LOANS/NPAs:

As on	No. of A/cs Restructured under CDR	Total Loans restructured
31-3-2009	184	86,536 cr
31-3-2010	215	104,299 cr
31-3-2011	242	111,914 cr
31-3-2012	292	150,515 cr
31-3-2013	401	229,013 cr
31-3-2014	476	330,444 cr
30-6-2014	486	348,502 cr

 

                                                                                            Live cases under CDR today:

                                                                             31-3-2014                               280 accounts         Rs. 242,259 crores

Sr. No.	Industry	LOANS GIVEN (Rs. Crore)
1	Infrastructure	57,906
2	Iron & Steel	40,783
3	Textiles	21,990
4	Power	20,253
5	Ship-Breaking/Ship Building	16,792
6	Construction	16,062
7	Telecom	10,785
8	Pharmaceuticals	9,249
9	NBFC	6,976
10	Engineering	5,668
Total Loans restructured under CDR  in above 10 sectors		2,06,464

30-6-2014                               281 accounts         Rs. 251,611 crores

(Source:AIBEA/AIBOA)

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With regards,

 

Dr. K. Sampath Kumar,  B.A. (Economics), BGL, M.Com., M.Phil., Cert. A.I.I.B.,
                                        MBA (Finance), MBA (HR & Marketing),  ACS, FCMA, Ph. D.,
Professor, SSN School of Management
C/o. SSN College of Engineering
Rajiv Gandhi Salai (OMR)
KALAVAKKAM - 603110
Kancheepuram District, Tamil Nadu, India
Landline :  044-24860668
Mobile    :  9094405733
 
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