PSU Banks requires to rise its capital due to rise in NPAs.

PSU Banks requires to rise its capital due to rise in NPAs.

Non Performing Assets (NPA), The issue of NPA is one of the biggest issue in our country when it comes to the progress of the country in terms of economy, after every few days we get to see another new things about NPA in INDIA.

Gross NPAs of the banking system have risen to 9.6% as of March 2017. Taken together with loans that have been restructured the ratio of stressed loans rises to 12% of total banking sector loans.

Now, public sector banks require capital because of a sharp rise in non performing assets(NPAs) in the last decade due to delays in repayment and these delays are mainly involve of power, steel and infrastructure.

Bank of Maharashtra, Central Bank of India, IDBI, UCO Bank , Dena Bank and Indian Overseas Bank have been put under watch by RBI due to rising NPAs and these six public sector banks have been put on the so called prompt corrective action (PCA).

According to the latest report  by credit rating agency Moody’s Indian public sector banks require between Rs 70,000 crore to 95,000 crore of approximately five time the Rs 20,000 crore budgeted by the government towards capital infusion until March 2019.

Economic Times.

                                                                                                                                                        Posted by  Faiyaz Shaikh

 

 

 

 

 

 

 

 

 

 

 

 

 

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