Bad debts of public sector banks surged to 5.32 per cent at the end of September 30 from 4.82 per cent on September 30, 2013.
Bad debts are technically called non-performing assets or NPA. Rising NPA is one of the key issues which will be discussed in a meeting of the chiefs of public sector banks and financial institutions with Finance Minister Arun Jaitley on Thursday.
Fourteen banks are laden with over 5 per cent NPAs. United Bank of India tops with over 11 per cent NPAs followed by Indian Overseas Bank with 7.19 per cent, Punjab National Bank with 6.45 per cent, IDBI Bank with 6.32 per cent, and Central Bank of India with 6.25 per cent. There are 12 banks with NPAs ranging between 3 per cent and 5 per cent. Vijaya Bank has 3.08 per cent, followed by Canara Bank with 3.36 per cent, Bank of India with 3.93 per cent, Syndicate Bank with 3.94 per cent and Indian Bank with 4.1 per cent. The meeting will also discuss the status of new projects that have approached banks for funds. From January 1 to September 30, public sector banks received 194 new projects and proposals (with investment of ₹250 crore and above in each project).
New projects These projects are in sectors such as power, cement, real estate, roads, automobiles, and oil, among others. These involve total investment of over ₹4.68 lakh crore.
So far, banks have sanctioned ₹60,572 crore, while over ₹11,000 crore have been disbursed.