J&K third state in country in bad loan ratio for CCBs

JAMMU: Jammu and Kashmir has the third largest gross bad loans ratio for district central cooperative banks (DCCBs) among the states in the country.
This information was presented in the Lok Sabha. The states with bad loan ration ahead of Jammu and Kashmir are Jharkhand and Bihar and the state just below Jammu and Kashmir, at the fourth rank, is Maharashrta. Maharashtra has the fourth largest gross bad loans ratio for district central cooperative banks (DCCBs) among the states in the country, according to data released in the Lok Sabha by the minister of state for finance, Santosh Kumar Gangwar. Maharashtra's gross bad loans as a percentage of gross advances stood at 15.04% at the end of March 2016, just below Jammu and Kashmir's 15.09%.
Jharkhand with 47.62% and Bihar with 21.77% tops the list of states with poor asset quality.
According to the data, the bad loan problem is spread over 31 banks in Maharashtra and Uttar Pradesh has 48 DCCBs with asset quality issues. In all, 348 of the 370 DCCBs in India have problem loans. The country's commercial banks are saddled with bad loans worth Rs 7 lakh crore. Gangwar said the state has taken sector-specific measures in infrastructure, power, roads, textiles and steel industries that are, to a large extent, responsible for these loans.
"The Insolvency and Bankruptcy code (IBC) has been enacted and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act and The Recovery of Debts due to Banks and Financial Institutions Act have been amended to improve resolution/recovery of bank loans. Six new Debt Recovery Tribunals have been established to speed up the recovery of bad loans in the banking sector, in addition to the existing 33," said the minister.
He said cooperative banks have been advised by the National Bank for Agriculture and Rural Development (NABARD) to initiate various measures.