Mumbai:
Net non-performing assets (NPAs) of public sector
banks (PSBs) have declined to 1.3 per cent of net advances
at the end of 2005-06, finance minister P Chidambaram
told the Lok Sabha.
Gross
NPAs of PSBs have declined from 5.6 per cent of gross
advances as of March 31, 2005 to 3.7 per cent as of March
31, 2006 while gross NPAs have declined to Rs41,378 crore
on March 31, 2006 from Rs47,696 crore on March 31, 2006,
Chidambaram said.
Gross
NPAs constituted 5.63 per cent of priority sector lending
and 2.81 per cent of non-priority sector lending at the
end of last fiscal, he said.
Chidambaram
said the slow recovery in NPAs is due partly to lack of
an effective and accurate land record system in the states,
inadequate security available in NPA accounts, time taken
in the proceedings in the Debt Recovery Tribunal and court
cases among others.
PSBs,
he said, have been making concerted efforts to recover
their NPAs through issue of notices under the Securitisation
and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002, one-time settlements and
recovery through Lok Adalats. PSBs have recovered Rs10,590
crore of NPAs as cash during 2005-06, he added.
While
ARCIL has near monopoly in acquiring bad debts of banks,
banks will have more choices over a period of time, he
said.
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