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April 27, 2007 14:13 IST
The net non-performing assets of public sector banks and financial institutions have come down by over Rs 3,700 crore (Rs 37 billion) and almost Rs 4,150 crore (Rs 41.50 billion) respectively from March 2004 to December last year, Lok Sabha was informed on Friday.
The banks and financial institutions have recovered Rs 21,202 crore (Rs 212.02 billion), Rs 22,169 crore (Rs 221.69 billion) and Rs 25,335 crore (Rs 253.35 billion) during 2003-04, 2004-05 and 2005-06 respectively, Finance Minister P Chidambaram said during the Question Hour.
He said the net NPAs of banks came down from Rs 18,320 crore (Rs 183.20 billion) to Rs 14,614 crore (Rs 146.14 billion), while that of the financial institutions declined from Rs 5,118 crore (Rs 51.18 billion) to Rs 969 crore (rs 9.69 billion) during this period.
To another question on complaints regarding the use of goondas by certain private banks to recover loans, Chidambaram said the RBI had received 154 complaints between 2003 and 2006 of alleged harassment in recovery of loans against private banks.
He said the RBI guidelines on fair practice code has already stipulated that the lender should not resort to undue harassment like bothering borrowers at odd hours or use muscle power to recover loans.
RBI has also issued instructions to all commercial banks and non-banking financial companies regarding credit card operations, including that the lender should not intimidate or harass anyone in their debt collection efforts.
The Supreme Court has also directed banks to resort to procedure recognised by law to take possession of vehicles in cases where the borrower may have committed default instead of resorting to strong arm tactics, Chidambaram said.
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