Bad loans have come down in banks: Chidambaram

New Delhi, Aug 18: Finance Minister P Chidambaram today said bad loans of public sector banks have come down from Rs 47,696 crore last year to Rs 41,378 crore, which is the lowest percentage for Non-Performing Assets (NPAs) in several decades.

Banks have taken many steps to bring down NPAs, which stood at Rs 41,378 crore as on March 31 this year, Mr Chidambaram told the Lok Sabha.

''The performance of public sector banks in reducing NPAs has been exemplary in the last two years,'' he said during question hour.

According to the Minister, the cash recovery from bad loans have been consistently improving over the years with Rs 10,590 crore recovered last year.

The cash recovery has been Rs 6,245 crore in 2002, Rs 6,927 crore in 2003 and Rs 8,560 crore in 2004, he added.

''I congratulate the bank managements, officers and employees for joining in the efforts to reduce NPAs,'' Mr Chidambaram said.

UNI