In a separate response on public sector banks’ non-performing assets, Minister of State at the Treasury Bhagwat Karad said public sector banks’ (PSB) NPAs have fallen from Rs 8.95.6 trillion in March 2018 €5,40,958 crore as of March 2022 primarily due to multiple factors including NPA write-offs.

Karad said gross NPAs of public sector banks (PSBs) have peaked €8.95,601 crore in 2018 – largely as a result of the asset quality review conducted by the Reserve Bank of India (RBI) – has since fallen to €5,40,958 crore as of March 31, 2022.

“The decrease in NPAs may also be due to write-downs conducted primarily to clean up the balance sheet, take advantage of tax benefits and capital optimization by PSBs under RBI guidelines and policies approved by the banks’ board of directors,” he said in Lok Sabha. He also attributed the decline in NPAs to the government’s strategy of recognition, resolution, recapitalization and reform.

“The decrease in NPAs may be due to updates in NPA accounts, recoveries in NPA accounts, and smaller variances. Over the past five fiscal years, PSBs have posted an overall recovery of €4,80,111 crore of NPA accounts and updating NPAs from €1.45.356 crore,” the minister said.

In addition, slippages in NPAs have decreased €3.38.710 crore for FY17 to €1,44,315 crore for FY22, all of which caused NPAs to fall, he said. “The decline in NPAs may also be due to write-downs primarily undertaken by PSBs to clean up the balance sheet, take advantage of tax benefits, and optimize capital,” he added.

Regarding the details of the top 50 loans that have been written off, RBI says it does not keep account-related information on written-off loan accounts, the minister said. The State Bank of India (SBI) tops the list among PSBs that have written down the value of non-performing loans €7,782 crore in FY22 followed by Punjab National Bank (PNB) at €3,441 crore and Union Bank of India €2,750 crores.

In the list of willful debtors as of 31 March 2022, fugitive Diamantaire Mehul Choksi’s Gitanjali Gems Ltd tops the list €7,848 crore followed by Era Infra Engineering Ltd €5,879 crore and Concast Steel and Power Ltd €4,596 crores. ABG Shipyard Ltd owes €3,708 crore to PSBs while Frost International Ltd is in debt €3,311 crores. In terms of currency in circulation, the FM said that in 2022 so far the value of banknotes in circulation increased by 9.86% to ₹ 31.05.721 crore.