NPAs hit a whopping Rs 3,00,611 crore as on December

Non-performing assets (NPAs) of banks touched a whopping Rs 3,00,611 crore as on December 2014 due to 'sluggishness' in growth. "Of the total NPAs, Rs 2,62,402 crore belonged to nationalised banks and Rs 38,209 belonged to private sector banks," Minister of State for Finance Jayant Sinha said during Question Hour in the Lok Sabha on Friday.

Total gross advances of nationalised banks as on December 2014 was Rs 46,49,843 crore while total advances of private sector banks was at Rs 16,77,875 crore, Sinha further said. He cited stalled projects, sluggishness in domestic growth in the last few years and slowdown in the global economy as the key reasons for the increase in NPAs.

Sinha added that in case where staff connivance is noticed with the borrower, banks take action as per the Reserve Bank of India circular on frauds. Banks conduct enquiry to fix up staff accountability and impose minor or major penalties depending on merit of each case. In April 2011-December 2014, as per the information provided by 20 major state banks, after inquiries into staff lapses in NPA cases, 470 employees were dismissed and major and minor penalties were imposed on 5,177 and 5,811 employees respectively.