Recent Data on Bank Frauds and NPA

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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