Recent Data on Bank Frauds and NPA

July 27, 2022

According to Minister of State for Finance, Bhagwat Karad, amount involved in bank frauds as well as select financial institutions has decreased by 8% in past two years. The amount has decreased from Rs 32,178 crore in 2019-20 to Rs 3,785 crore in 2021-22.

Key Points of the govt data:

As per RBI data, in 2020-2021, frauds involving Rs 11,800 were detected.
Gross non-performing assets (GNPAs) of India have decreased to 5.9%. It is lowest in six-year.
However, NPA ratio is highest among countries. India’s NPA is highest after Russia that reported bad loans of 8.3%.
In terms of NPA ratio, India is followed by South Africa with 5.2 per cent NPA ratio.
China has NPA ratio of 1.8%, Indonesia has 2.6% NPA ration while US has NPA ratio of 1.1%. USA’s NPA is lowest among all.

Ex-gratia relief provided by India:

India has provided ex-gratia relief to several eligible borrowers, in light Covid-19 situation. Reliefs were provided through way of payment of the difference between compound interest and simple interest. Around 19.92 crore borrowers have been benefited. An ex-gratia amount of Rs 6,474 crore have been provided to them.

Non-performing asset (NPA):

NPA is a loan or advance which are in default, usually because its principal or interest payment have not been paid for 90 days.

Gross non-performing assets (GNPAs):

GNPAs are defined as sum of all the loans defaulted by individuals, who have received loans from financial institution.

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