After a big surge in non-performing assets (NPAs) of the troubled energy sector in 2018, NPAs declined in 2019, aided by a host of regulatory measures and resolution initiatives of the banking sector. Gross NPAs in the energy sector fell to Rs 1,06,908 crore as of September 2019 from Rs 1,22,170 crore in September 2018, the Reserve Bank of India (RBI) has said. In its reply to a query made by The Indian Express under the Right to Information Act, the RBI said as much as 18.03 per cent of the energy sector exposure as of September 2019 is still classified NPA, but it has fallen from 20.3 per cent in September 2018. Bad loans of the energy sector spurted from just Rs 46,627 crore in September 2017 to Rs 1,22,170 crore in a year, a rise of 162 per cent.
A loan is classified as NPA if the principal or interest or both are due for repayment for over 90 days. While total loan outstanding of the energy sector amounted to Rs 5,93,052 crore, State Bank of India accounted for a major share of the exposure at Rs 1,97,359 crore.
