Page 6 - Banking Finance September 2023

BANK UPDATE

ister of State for Finance Bhagwat against the schedule commercial Enforcement of Security Interest Act,
Karad informed that the Ministry of banks' GNPA of 3.87 per cent in March setting up of National Asset Recon-
Corporate Affairs has told him that the 2023, he said. struction Company Limited and cre-
amount owing to the Investor Educa- ation of stressed asset management
Replying to another question, Karad
tion and Protection Fund as of March verticals by SCBs.
said, the total number of frauds as re-
31, 2023, is Rs 5,714.51 crore.
ported by the cooperative banks dur-
"Fugitive Economic Offender Act was ing FY23 was 964 with amount in- Five-day work week for
enacted in 2018. The Directorate of volved to the tune of Rs 791.40 crore.
banks gets IBA nod
Enforcement (ED) has informed that as
During FY22, the total number of fraud
After nearly a year of repeated repre-
on August 2, 2023, there are eight fu-
was 729 and the amount involved was
sentations and petitions by various
gitive economic offenders who are wil-
Rs 536.59 crore as against 438 frauds
bank employee unions, five days bank-
ful defaulters," he said.
involving Rs 1,985.79 crore in FY21, he
ing is closer to becoming a reality
In addition, ED has informed that as on said.
soon.
August 2, 2023, proceeds of crime of
According to highly placed sources, in
fugitive economic offenders, amount- Banks recover over Rs. 10
a meeting held by the Indian Banking
ing to Rs 34,118.53 crore have been
lakh crore in last nine year Association (IBA), a representative
attached, out of which assets amount-
body of managements of Indian banks,
ing to Rs 15,838.91 crore have been Banks have undertaken an aggregate
the industry demand for put forth by
confiscated and assets amounting to Rs recovery of Rs 10,16,617 crore during
banks employee unions to declare all
15,113.02 crore have been restituted the last nine years through measures
Saturdays as a bank holiday is said to
to the public sector banks, he said. taken to recover and reduce non-per-
have been accepted by the industry
forming assets, the finance ministry
body. The IBA has forwarded the peti-
has stated in Parliament.
Credit card defaults hit Rs.
tion to the ministry of finance for its
The outstanding amount by scheduled
4,072 crore in FY23 approval.
commercial banks (SCBs) to corporate
Credit card default rose to Rs 4,072
company borrowers, classified as non-
crore or 1.94 per cent at the end of
performing assets (NPA) and having SBI profit nearly triples to
March 2023, Parliament was in-
amount outstanding of Rs 1,000 crore
formed. all-time high at Rs. 16,884
or more stood at Rs 1,03,975 crore as
crore
"As per the inputs received from RBI, on March 31, 2023, Minister of State
in respect of defaults in credit cards, for Finance Bhagwat Kisanrao Karad State Bank of India, reported a whopping
the gross non-performing assets said in a written reply to a question in 178.25 per cent jump in the June quar-
(GNPAs) in credit cards was Rs 3,122 Lok Sabha. ter profit to Rs 16,884 crore on the back
crore in March-2022 and Rs 4,072 of a surge in treasury income, healthy
"Comprehensive measures have been
crore in March-2023, while credit card loan growth, and lower provisions.
taken by the Government and RBI to
outstanding in March-2022 and
recover and to reduce NPAs, including Net interest income - the difference
March-2023 was Rs 1.64 lakh crore and
those pertaining to corporate compa- between interest earned and interest
Rs 2.10 lakh crore, respectively," Min-
nies, which has enabled an aggregate expended - grew by 24.71 per cent to
ister of State for Finance Bhagwat
recovery of Rs. 10,16,617 crore (RBI Rs 38,905 crore. Net interest margins
Karad said in a written reply in Rajya
provisional data for FY 2022-23) by from domestic operation swelled 24
Sabha.
SCBs during the last nine financial basis points year-on-year (YoY) to 3.47
GNPAs in credit cards have declined years," the reply said listing out mea- per cent. NIM for the quarter stood at
from 3.56 per cent in March 2021 to sures such as changes in Insolvency and 3.84 per cent due to interest on in-
1.91 per cent in March 2022, and Bankruptcy Code, Securitisation and come from tax refund, which was not
stand at 1.94 per cent in March 2023 Reconstruction of Financial Assets and there in the April-June period.
6 | 2023 | SEPTEMBER | BANKING FINANCE