In the last June-quarter, government-owned banks recovered only Rs 1,416 crore from loan defaulters while adding more than twice that amount by way of non-performing assets during the same period. Such recoveries have mostly come from smaller borrowers, even as the Union Finance Ministry is focused on the top 30 non-performing accounts in public sector banks.
In the April-June period, State Bank of India (SBI), the country’s largest bank, recovered just 474 crore in the April-June period while fresh additions amounted to 1,196 crore.
The Finance Ministry sources said that largely recoveries are made in small-value loans for the simple reason that most large accounts have been restructured or are being discussed in the corporate debt restructuring (CDR) cell.
Leave a Reply
You must be logged in to post a comment.