He pointed out that Rs 7.33 lakh crore of bad loans originated during the term of the Congress-led United Progressive Alliance (UPA).In 2008-14, gross advances of public sector banks grew at annualised rates of 14% to Rs 52 lakh crore from Rs 18 lakh crore. Through relaxations in loan classification, the previous government kept losses of banks and their precarious position hidden, Jaitley said, “These loans were restructured through this, the loss to banks was kept hidden,” he said. “During 2010-11 to 2013-14 too, Government provided banks an amount of Rs 4,000 crore for recapitalisation. Was that also for waiving loans of capitalists?” Jaitley demanded.He said the asset quality review carried out in 2015 revealed high NPAs though recognition of bad loans. NPAs of state-run banks rose to Rs 7.33 lakh crore in June 2017 from Rs 2.78 lakh crore in March 2015.Between 2013-14 and the first quarter of FY 2017-18, provision of Rs 3.8 lakh crore was made to deal with expected losses, as against a provision of Rs 1.97 lakh crore in the preceding 10 years, he said.

Source: Economic Times November 28, 2017 11:09 UTC