Union Finance Minister, Mr. Pranab Mukherjee has urged the public sector banks across the nation to bring down their nonperforming assets. M. Mukherjee was in a meeting with PSBs to adjudge their performance.
The banks recovered some of their bad loans in the last quarter of FY11-12, and brought down their gross NPAs from 3.18% of total advances to 3.1% on quarterly basis.
Mr. Mukherjee was content with the progress of the banks towards managing their NPAs, and further asked them to "keep up the momentum". He further added that banks were being very proactive towards the NPA management, and avoiding NPAs.
"I urge you to deploy various tools at your command for containing and rolling back NPAs in accordance with the guidelines of the RBI," FinMin added.
State Electricity Boards and textiles sector are the most stressed assets, with Rs. 1.3 lakh crore and 35,000 crore under stress respectively; and could get fresh loans in near future.
The state owned banks saw an altogether good growth with deposits showing 14.4% growth at over Rs. 50 lakh crore; the advances for the public sector banks also registered a 17.7% growth to over Rs. 40 lakh. The profits also rose by around Rs. 4,500 crore.