Banks get better Rs 61,000 crores through one-time settlement of loans
New Delhi:
Eleven banks have recovered practically Rs 61,000 crore by way of one-time settlement in practically 4 monetary years; the federal government knowledgeable Parliament on Monday.
The figures are for the final three monetary years and as much as December 2021 of the present fiscal.
As per directions of the Reserve Financial institution, banks are required to have a board-approved mortgage restoration coverage, which can cowl negotiated settlements by way of compromise, together with one-time settlement (OTS) below which restoration in non-performing belongings (NPA) mortgage accounts are to be effected to the utmost extent doable at minimal expense, Minister of State for Finance Bhagwat Karad stated in a written a reply to the Lok Sabha.
He stated such measures meant to assist banks promptly recycle their funds with benefit.
“All nationalised banks have board-approved mortgage restoration coverage in place. As per enter obtained from the 11 nationalised banks, OTS was accredited in 38,23,432 instances over the past three monetary years. Additional, the combination quantity of Rs 60,940 crore has been recovered by way of OTS by these nationalised banks over the past three monetary years and as much as December 2021 of the present monetary 12 months,” Mr Karad stated.
These 11 banks are, Punjab Nationwide Financial institution recorded the best variety of OTS at 8.87 lakh, adopted by Financial institution of India 4.97 lakh; Financial institution of Baroda 4.34 lakh; Indian Financial institution 4.27 lakh; Canara Financial institution 4.18 lakh; and Central Financial institution of India 4.02 lakh.
The others are Union Financial institution of India 2.99 lakh; UCO Financial institution 2.38 lakh; Indian Abroad Financial institution 1.33 lakh; Financial institution of Maharashtra 63,202 and Punjab & Sind Financial institution 20,607.