Published On : Thu, Jun 2nd, 2016

RTI stunner: Banking industry loses Rs 4.64 lakh crore in bad loans in India

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Nagpur: This RTI reply will leave you stunned. And the stunner is banking industry of the country. A staggering Rs 4,63,941 crore of public money has been lost by public sector banks and private sector banks in India. Another Rs 75,000 crore will disappear under the innocuous entry of “bad debts” this year, says the RTI reply. In common man’s terms, this means the balance sheets of most public sector banks are in as much of a shambles as their branch offices.

Topping the list of Non-Performing Assets (NPAs) in public sector banks expectedly is State Bank of India (SBI) with the dubious figure of Rs 72,801 crore. And in private sector, ICICI Bank has emerged as topper with NPA of Rs 21,149 crore.

This bewildering information was provided by Reserve Bank of India (RBI) in an RTI reply to activist Abhay Kolarkar. The gross NPA of public sector banks is Rs 4,04,677 crore while private sector bank is Rs 47,109 crore. The NPA of foreign banks is Rs 12,155 crore. The net profit of public sector banks is Rs 5,510 crore while private sector banks is Rs 32,263 crore. The foreign banks also earned net profit of Rs 9,416 crores. Bank of Baroda has declared total NPAs of Rs 38,934 crores, Bank of India has total NPAs of Rs 36,519 crores.

According to the RTI reply, the NPAs of Indian banks were Rs 53,917 crore in September 2008. The bad loans have now grown to Rs 4,04,677 crore in December 2015. The deposits of non-resident Indians (NRI) have also increased in these banks. The total deposit from NRIs are Rs 10,03,686 crore, of which share of public sector banks is Rs 5,98,672 crore while private sector banks bagged Rs 2,94,406 crore.

The foreign banks have also received deposits of Rs 1,10,608 crore from NRIs upto December 2015.

However, the RBI has refused the share the list of willful defaulters to the RTI activist.

The list is dominated mostly by public sector banks. State-run banks seem to be in the crisis due to their high NPAs, which constitute over 90 percent of the total bad loans of the industry. Many of them have reported losses on account of huge NPAs in the last quarter. The RBI has given a deadline of March 2017 for all banks to clean up their balance sheets, which also require these lenders to set aside huge chunk of capital in the form of provisions.

Details of NPAs, losses and profits of public sector banks, private sector banks and foreign banks are as follows:
RTI about RBI (1)

RTI about RBI