New Delhi: About 23 percent of the projects to which public sector banks provided loans worth about Rs 54,000 crore in 2014-15 have turned non-performing assets (NPAs), Parliament was informed on Tuesday.
A total of 17 projects out of 74, with amounts involving Rs 54,056.75 crore, have turned non-performing assets (NPAs) during 2014-15, Minister of State for Finance Jayant Sinha said in a written reply to Rajya Sabha.
However, the Minister did not provide project wise details citing confidentiality on borrower specific credit information and said it is prohibited from disclosure.
In these cases of loans turning NPAs, the Minister said Rs 1,308.72 crore loan amount was written off, while interest of Rs 548.67 crore was waived off during 2014-15.
He said banks failed to recover loans and checking increase in NPAs on account of reasons such as poor industrial scenario, low profitability, delay in getting statutory approval resulting in projects getting extended, as well as escalation in cost of project and postponement of date of commencement of commercial operations.
"Promoters find it difficult to bring in additional funds to meet the escalation in cost of project due to cost overrun which also results in delay in commissioning of the projects and cash flow mismatch.
"Hence, enough cash flow could not be generated to service the banks' dues, which turns these accounts as NPAs," he added.
