Know your #PSU banks- how responsible are they with your deposit money ( #FD)

"According to a August 26 (2013) finance ministry note, the NPAs of public sector banks (PSBs) have gone up by 4.39 per cent with the total amount clocking over `1,76,000 crore. The amount is equal to the total budget of health, education and rural development of the country put together. The government owns majority stakes in PSBs and it is responsible for the money deposited in their accounts. If we add the NPAs of the nationalised banks, including the SBI group, the total figure is a whopping `3,50,000 crore, which could easily finance India’s military and internal security expenditure." ( Did you know this???)

The finance ministry has pointed out four major reasons - current macro economic situation, increased interest rates, lower economic growth and aggressive lending by banks - responsible for increase in NPAs. Among the measures to recover money from defaulters, the ministry has advised PSBs to appoint nodal officers for recovery at each zonal office and Debts Recovery Tribunal (DRT). The banks were directed to conduct special drives for recovery of toxic assets and to constitute a board-level committee for monitoring of recovery process. “The government has instructed public sector banks that write-offs should not be more than recovery,” the ministry said.

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