Nationalised Banks :

14 Banks were nationalised in 1969 and Non-performing Assets figures were Rs.70,000 crores in year 2001-2002 within the period of 23 years. The Banks had to file a suit against their customers in Civil Court and after decision of Trial Court there was an appeal in the High Court. The Banks practically did not recover their dues. The Government after 23 years had established Debt Recovery Tribunal for the Banks in 1993. The exclusive jurisdiction of the Debt Recovery Tribunals was not sufficient remedy to recover the dues of the Banks promptly from the debtors of the Banks.

The Central Government has taken 32 years to pass an Act "Securitisation Enforcement of Security Interest Act, 2002." The Act enables the setting up of assets Management Companies, addressing the problems of Non-performing assets (NPAs) of Banks and financial institutions and enhancing creditors rights.

This is a classic case where Reserve Bank of India, State Bank of India and other Banks and The Central Government did not apply their minds to find out the right remedy to recover dues. Due to delay in finding out remedy Non-performing assets have increased to Rs.70,000 crores at the end of year 2001-02. It is reported that it is now Rs. one lac crore.

There are number of other instances which can be given, where decisions are not taken at proper time, which has resulted in enormous loss of public money.

India should have fast Decision Economy which can solve our number of other problems.

BANK AND NON-PERFORMING ASSETS

Indian Economic Survey 2002-2003 has given particulars in Table 3.6 (page 60) : The Non Performing Assets of Banks (Banks NPA)

Table show Non-performing assets of SCBs.