In reply to a question in Lok Sabha, Thakur stated that firms include Project & Development India Ltd., Hindustan Prefab Limited (HPL), Engineering Project (India) Ltd., Bridge and Roof Co. India Ltd, Pawan Hans Ltd., Air India and its five subsidiaries and one JV, among others.
“During the last two years, strategic disinvestment of 5 CPSEs (HPCL, REC, NPCC, HSCC and DCIL) has been successfully completed. Profitability is not a criterion for strategic disinvestment,” he said adding that Strategic disinvestment has been guided by the basic economic principle that the government should not be in the business to engage itself in sectors where competitive markets have come of age.
BAD LOANS IN PSBs
Withdrawal of Development Financial Institutions (DFIs) from financing high-value core industry and infrastructure project finance, is a a key reason for higher bad loans in state run banks, said minister of state for finance Anurag Thakur.
“Since such financing is based on future cash flows that are generated only after project commissioning and repayment is spread over a long period, higher risk is inherent,” said Thakur in replay to a question in Lok Sabha adding that higher level of NPAs and relative weakness in financial performance indicators is a reflection of the greater share of PSBs in such lending.
Gross NPAs of commercial banks and PSBs have since declined by Rs 1.02 lakh crore and Rs 1.06 lkah crore respectively to Rs 9.33 lakh crore and Rs 7.89 lakh crore respectively as on Mrach 2019, he stated in his reply.
In answer to a separate question, Thakur said that the total number of bank branches of commercial banks across the country as March 2019 was 1,46 lakh out of which 51,653 bank branches (35.15%) are in rural areas. Further, the number of rural branches of Scheduled Commercial Banks (SCBs) has increased from 41,823 in March 2014 to 51,653 in March, 2019, he stated adding that 42,583 ATMs as on March, 2019 are providing banking services in rural areas.
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7 Comments on this Story
Sunil Agrawal458 days ago
be careful in disposing public assets
Rajesh Banerjee458 days ago
Would love to hear when Banks are divested and MPs lose clandestine yet forceful control over lendings
Nemani Hanumanta Rao458 days ago
I fully agree with the views of Guptaji.