Rs 74K cr bank loan defaults in '09-10
The absolute figures may be scary that the banking system in India is saddled with Rs. 74,685 crores as at 31st March, 2010, but in percentage terms it is very much under control as also within global standards. Share of Public Sector Banks may also look alarming but once again in per centage terms, they are more efficient than Private Sector Bank for a consecutive third year. When we reckon the absolute growth of advances or percentage increase, it is PSBs that are far ahead of their private counter-parts.
The general impression that Public Sector is bad, inefficient or unproductive is a mere misnomer. Going by their size, historical age and reasons, they are justified in extending credit on liberal terms as per the prudential norms and RBI guidelines.