Bad debts with public sector banks on the rise
Posted on: 22/Jul/2015 4:47:51 PM
In the past financial year, the bad debts of public sector banks seem to have raised to 2.67 lakh crores. The bad debt as of the end of March 2014 was 2.16 lakh said Jayanth Sinha, the Minister of State for Finance in the Rajya Sabha. He stated that the bad debts of public sector banks are on the rise, in his written statement.
The total bad debts of public sector companies is 5.43 per cent as of the end of March 2015. This was 4.72 per cent by end of March 2014. All public sector banks, central government and Reserve bank are focusing on these bad debts. In addition to the reduction in profit with these banks due to increasing bad debts, it has also affected the self-sufficiency ratio, he added.
In the financial year 2014-15, a sum of Rs 41,236 crore of bad debts were recovered. He added that between 2013-14, a total of Rs 33,698 crore was recovered by the public sector banks.
Net profit:
In the last financial year, compared to public sector banks, the private banks made higher net profit which was about Rs 1153 crore higher. The net profit with private banks was RS 38,976 crore. This was just Rs 37,823 crore with the public sector banks, said Jeyanth Sinha. About 20 public sector banks hold about 70 per cent of the market.
