New Delhi: Banks working in India have written off unhealthy loans price Rs 660 thousand crore since 2014, as per RBI knowledge studied by NewsClick. The quantum of loans that have been written off quantities to half of the full non-performing belongings or unhealthy loans that have been recorded within the monetary books of the banks.
Knowledge printed by Reserve Financial institution of India (RBI) additionally exhibits that as a lot as Rs. 237 thousand crore was written off from the monetary books of the banks in monetary 12 months 2018-19 alone.
The graph proven beneath charts the steep rise within the quantity being written off, usually referred by banks as technical write-offs, permitting them to wash up their books, because the banks fail to recuperate the loans.
In response to the RBI knowledge, NPAs or unhealthy loans on the monetary books of banks have additionally seen a steep rise ever since 2014 – additionally the 12 months the Bharatiya Janata Get together-led authorities got here to energy on the Centre.
The overall NPAs in 2013-14 amounted Rs. 205 thousand crore, which rose to a whopping Rs 1,173 thousand crore in 2018-2019. This steep rise in NPAs is stunning, particularly below the watch of get together that promised in its 2014 election manifesto that it might “take crucial steps to scale back NPAs in banking sector.”
Zooming Financial institution Fraud Circumstances
Throughout the identical interval, the instances of financial institution frauds additionally noticed a steep rise. Circumstances of frauds of greater than Rs 1 lakh stood at 4,306 in 2012-13, and rose to six,801 in 2018-19.
Cash Sunk in Financial institution Fraud Circumstances
Because the variety of financial institution fraud instances elevated, so did the sum of money sunk owing to those frauds. In response to RBI’s annual report for 2018-19, the quantity sunk in March 2013 attributable to financial institution frauds was Rs. 10.2 thousand crore, which rose to a stunning Rs 71.5 thousand crore in March 2018.
The impression of rising unhealthy loans and rising instances of financial institution frauds is already being felt by depositors, the most recent instance being the collapse of personal sector Sure Financial institution. In on of the largest ever financial institution failures within the nation, the non-public lender collapsed, forcing RBI to impose a moratorium on the non-public lender on March 5. The beleaguered financial institution is now set to be bailed out with State Financial institution of India (SBI) being the lead rescuer, together with some non-public banks.
Usually referred by the trade consultants, analysts and financial institution workers’ unions as the rationale behind the ‘scrambling’ Indian banking trade, the rising NPAs, written off unhealthy loans, financial institution fraud instances, paint a sorry image for the way forward for the Indian banking system.