Nirmala Sitharaman directs PSBs to ensure monitoring of large accounts, enhance diligence of loan disbursement
₹68,500 crore during the first six months of the current financial year. During 2022-23, it said banks' balance sheets grew at a healthy pace, with both deposits and credit growth accelerating. The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) fell to a decade low of 3.9 per cent at the end of March 2023 and further to 3.2 per cent in September.
As per the report, the improvement in asset quality of banks that began in 2018-19 continued during 2022-23. The GNPA ratio stood at 3.2 per cent in the April-September period of the current fiscal. The issues related to fraud and defaulters and progress on the National Asset Reconstruction Company Ltd (NARCL) also came up for discussion.
NARCL, a government entity, was incorporated in 2021 with a majority stake held by PSBs and the balance by private banks. Canara Bank was the sponsor bank. It is registered with the Reserve Bank of India as an asset reconstruction company under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
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