Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

But the job is not done yet!
Vote for the deserving candidate this year.

Check your mail to know more

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
SPONSORED BY
LIVE TV DownloadNews18 App
News18 English
»
1-min read

Rising NPAs in Education Loan Add to Banks' Stress

As per the data compiled by the Indian Banks' Association (IBA), the total outstanding education loan at end of the fiscal 2016-17 was Rs 67,678.5 crore, of which Rs 5,191.72 crore was NPA.

PTI

Updated:December 24, 2017, 11:25 AM IST
facebookTwittergoogleskypewhatsapp
Rising NPAs in Education Loan Add to Banks' Stress
Picture for Representation. (Photo: Reuters)
Loading...
New Delhi: Education loans too have started bleeding the banking sector with the default in repayment rising to 7.67 per cent of the outstanding amount at March-end, 2017 from 5.7 per cent two years ago.

As per the data compiled by the Indian Banks' Association (IBA), the total outstanding education loan at end of the fiscal 2016-17 was Rs 67,678.5 crore, of which Rs 5,191.72 crore was NPA.

The government is already struggling to deal with the problem of mounting NPA in the public sector banks and has drawn a mega recapitalisation plan to strengthen them. The IBA data revealed that the non-performing asset (NPA) in the segment in percentage of the total loan has been constantly increasing.

The NPA was 5.7 per cent in 2014-15, which rose to 7.3 per cent in the following fiscal and further to 7.67 per cent in the last financial year.

The government had earlier modified the IBA's Model Education Loan Scheme with a view to reduce the incidence of NPAs in the segment.

The changes made in the scheme include extension of repayment period to 15 years and the launch of credit guarantee fund scheme for education loan (CGFEL) for up to Rs 7.5 lakh.

The CGFEL provides guarantee to the extent of 75 per cent of the defaulted loan.

As per the IBA data, state-owned Indian Bank accounted for the maximum education sector bad loan, amounting to Rs 671.37 crore as on March 2017. It was followed by the SBI (Rs 538.17 crore) and Punjab National Bank (Rs 478.03 crore).
| Edited by: Huma Tabassum
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
T&C Apply. ARN EU/04/19/13626
 
Most Active
Company Price Change %Gain
Reliance 1,385.95 3.14
PC Jeweller 145.15 -0.55
Interglobe Avi 1,554.40 -1.74
Tata Motors 236.25 2.49
Infosys 717.05 -0.97
Company Price Change %Gain
SpiceJet 136.25 2.68
PC Jeweller 145.20 -0.55
HDFC Bank 2,290.15 -0.63
Reliance 1,382.90 2.79
Jet Airways 163.90 -32.23
Top Gainers
Company Price Change %Gain
Reliance 1,385.95 3.14
JSW Steel 299.15 2.73
Tata Motors 236.25 2.49
BPCL 362.90 1.51
Wipro 284.80 1.39
Company Price Change %Gain
Reliance 1,382.90 2.79
Tata Motors 235.90 2.32
Asian Paints 1,465.35 0.65
TCS 2,145.50 0.61
Coal India 251.75 0.22
Top Losers
Company Price Change %Gain
Yes Bank 255.80 -4.00
Indiabulls Hsg 800.55 -3.83
Hindalco 207.20 -3.61
Vedanta 178.60 -3.43
Zee Entertain 402.30 -3.19
Company Price Change %Gain
Yes Bank 255.30 -4.18
Vedanta 178.70 -3.51
IndusInd Bank 1,764.00 -2.86
Tata Steel 542.85 -1.77
Larsen 1,360.75 -1.57

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results