Punjab Cooperative Banks have least NPAs at less than 1% -Only 2 states better, Minister Responds to MP Arora in Rajya Sabha
Punjab ranks 3rd in the country in terms of fewer NPAs in Cooperative Banks as of March 31, 2024, according to data provided by Union Minister of State for Finance Pankaj Chaudhary. The information was shared in response to questions raised by Ludhiana-based Rajya Sabha MP Sanjeev Arora during the ongoing winter session of Parliament. The highest Gross NPA percentage is in Jammu & Kashmir (55.52%) and the lowest in Telangana (0.08%). However, Punjab's Gross NPA percentage is 0.91%.
City Air News
Dec 6, 2024 06:31
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Ludhiana, December 6, 2024: Punjab ranks 3rd in the country in terms of fewer NPAs in Cooperative Banks as of March 31, 2024, according to data provided by Union Minister of State for Finance Pankaj Chaudhary. The information was shared in response to questions raised by Ludhiana-based Rajya Sabha MP Sanjeev Arora during the ongoing winter session of Parliament. The highest Gross NPA percentage is in Jammu & Kashmir (55.52%) and the lowest in Telangana (0.08%). However, Punjab's Gross NPA percentage is 0.91%.
In a statement issued here on Friday, Arora shared that, according to data provided by the Minister, of the total Gross NPA amount of Rs.14,53,742.83 lakhs in Cooperative Banks as of March 31, 2024, the State-wise Gross NPA amounts (in lakhs) in Cooperative Banks as of March 31, 2024, are as follows: Kerala-Rs.5,09,284.36, Maharashtra-Rs.3,08,215.20, Karnataka-Rs.1,13,557.75, Madhya Pradesh-Rs.69,624.68, Tamil Nadu-Rs.64,074.76, West Bengal-Rs.53,108.03, Uttar Pradesh-Rs.42,993.00, Himachal Pradesh-Rs.40,492.39, Jammu & Kashmir-Rs.30,338.91, Andaman & Nicobar-Rs.29,691.35, Tripura-Rs. 20,887.88, Andhra Pradesh-Rs. 17,742.96, Arunachal Pradesh-Rs.15,334.20, Meghalaya-Rs.14,991.24, Odisha-Rs.14,200.21, Bihar-Rs. 14,027.73, Assam-Rs.13,617.67, Uttarakhand-Rs.13,238.45, Nagaland-Rs.10,666.37, Jharkhand-Rs.10,422.96, Puducherry-Rs.8,594.53, Chattisgarh-Rs.7,252.81, Gujarat-Rs. 6,325.26, Punjab-Rs.5,521.95, Manipur-Rs. 4,960.48, Goa-Rs.4,697.34, Mizoram-Rs. 2,904.67, Sikkim-Rs.2,225.99, Rajasthan-Rs.1,668.94, Daman & Diu-Rs.1,100.89, Telangana-Rs.990.11, New Delhi-Rs.634.36 and Chandigarh-Rs.355.4. Interestingly, Haryana State has no NPA amount.
The Minister further answered that as reported by National Bank for Agriculture and Rural Development (NABARD) and Reserve Bank of India (RBI), 7 State Cooperative Banks (SCBs), 424 Urban Cooperative Banks (UCBs) and 120 District Central Cooperative Banks (DCCBs) are having Gross Non- Performing Assets (GNPAs) higher than 10%.
Arora said the Minister mentioned in his reply that RBI/NABARD have implemented several measures to expand the operations and strengthen the financial health of cooperative banks. The measures implemented in Urban Cooperative Banks (UCBs) includes increased housing loan limits; phased approach for UCBs to comply with Priority Sector Lending (PSL) target of 75% of adjusted net bank credit (ANBC) or credit equivalent amount of off-balance sheet exposure (CEOBSE) by March 31, 2026. UCBs have to adhere to prudential exposure limits of 15% for a single borrower/party and 25% for a group of connected borrowers/parties, based on their Tier-I capital. Additionally, at least 50% of their loans must be in amounts not exceeding Rs.25 lakh or 0.2% of Tier-I capital, up to a maximum of Rs.1 crore per borrower/party.
Likewise, the measures implemented in Rural Cooperative Banks (RCBs) includes notification issued by RBI on 8th June 2023 to widen the scope of prudential framework for stressed assets. RBI has allowed State Cooperative Banks and DCCBs to issue new capital instruments vide notification dated 19th April 2022. RCBs have been permitted to extend finance to Commercial Real Estate - Residential Housing (CRE-RH) sector within the existing housing finance limit of 5% of their total assets.
