Over 6,000 bank officials held for bad loans in FY18: Jaitley

In cases of lapses that led to bad loans, action has been taken against more than 6,000 officers of nationalised banks in fiscal year 2018, the government said.

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Over 6,000 bank officials held for bad loans in FY18: Jaitley

In a written reply on Friday, Finance Minister Arun Jaitley said that minor and major penalties have been imposed against erring officials- including dismissal, compulsory retirement and demotion.

Jaitley said “As per the inputs received from nationalised banks, in the Fiscal Year 2017-18, 6,049 officers have been held responsible on account of staff delinquency in NPA accounts.”

The 19 nationalised banks, including PNB and Canara Bank, reported a net loss of Rs 21,388 crore in the first half of the fiscal. This compares with a combined loss Rs 6,861 crore in the similar period of 2017-18.

Meanwhile, in a written reply to the lower House, Shukla said as a result of transparent recognition of bad loans, the non-performing asset (NPA) amount of all commercial banks rose from Rs 5.66 lakh crore at end-March 2016 to Rs 9.62 lakh crore at end of March 2018.

He further said the public sector banks have reported a “record recovery” of Rs 60,713 crore in the first half of the current financial year. This, he said, was double the amount recovered by them during corresponding period of the last financial year.

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Over 6,000 bank officials held for bad loans in FY18: Jaitley
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Over 6,000 bank officials held for bad loans in FY18: Jaitley
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In cases of lapses that led to bad loans, action has been taken against more than 6,000 officers of nationalised banks in fiscal year 2018, the government said.
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The Policy Times