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| According to the RBI report on trends and progress of banking in India, 2002-03, there has been a major decline of net NPAs on back of increased provisioning to 4.5 per cent in fiscal 2003 as against 5.8 per cent in the previous fiscal. The net NPAs of banks as on March 2003 was at Rs 32,764 crore against Rs 35,256 crore the previous fiscal. |
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| The RBI has also added cumulative provisioning against gross NPAs of public sector banks have increased to 47.2 per cent from 42.5 per cent in fiscal 2002. |
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| The provisioning for SBI group were, however, reflecting an improvement in asset quality. There has been a marginal increase in the incremental gross NPAs of nationalised banks with additions outpacing recoveries. |
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| According to RBI, in order to contain the growth of NPAs, recovery management has become a keyword for banks. NPAs of scheduled commercial banks have witnessed a decline since the initiation of income recognition and asset classification norms. |
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| The number of cases filed by banks in Lok Adalats for resolving cases of Rs 10 lakh and above was at 2,72,793 as on June 30,2003 involving Rs 1,193.3 crore. |
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| The amount recovered in 87,907 cases through Lok Adalats was Rs 190.5 crore. Also out of 57,915 cases filed by banks in debt recovery tribunals involving Rs 82,266 crore as on June 30,2003, 22,163 cases involving Rs 19,633 crore have been adjudicated and Rs 5,787 crore have been recovered. |
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| Banks have also recovered around Rs 500 crore through the SARFESI Act till June 2003. Public sector banks had issued 33,736 notices for an outstanding amount of Rs 12,147 crore. |
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| Public sector banks have identified NPAs worth Rs 12,000 crore to be sold to asset reconstruction companies. |
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