Nearly 10 public and private sector banks recovered Rs. 47,240 crore bad loans in the financial year 2017. Economic Times – the leading business newspaper of India, reveals this information. Out of the total amount recovered by banks, Rs. 16,000 crore was received in quarter four (Q4) of FY17.
At the end of March 2017, the gross non- performing asset of 37 banks in India remained at Rs. 7.1 lakh crore compared Rs. 5.71 lakh crore in 2016. The reasons that affected the recovery of bad loans of both public and private sector banks were the lack of capital and the scrutiny done by investigative agencies.
Commenting on loan recovery by banks, Siddharth Purohit, the senior research analyst, Angel Broking, said “The underlying asset to which banks have lent is not performing, so recovery and up-gradation will take some more time.”
In the financial year 2017, only Canara Bank and Punjab National Bank could manage to push bad loans and recovered Rs. 10,017 and 10,677 in the PSU sector. In the private sector, Axis Bank performed well recovering Rs. 4,367 crore. ICICI Bank recovered Rs. 2,538 crore. Similarly, banks such as SBI recovered Rs. 5,197 crore, Central Bank of India Rs. 2,378 crore, Bank of India Rs. 4,598 crore, Bank of Baroda Rs. 4,088 crore, and Union Bank Rs. 1,388 crore in Q4 of FY 17.