The Standing committee on Finance today said the Net Non performing Assets (NPAs) of Public Sector Banks stood at two lakh five thousand twenty four crores till September 2015 and the Gross NPAs during the corresponding period stood at three lakh sixty nine thousand nine hundred ninety crore rupees. In its twenty seventh report tabled in Parliament, the committee observed the bulk of bad loans of banks may be linked to firms that are struck with over capacity and weak demand.The report said the prolonged slowdown in the economy has eroded the market for distressed assets so much so that even Asset Reconstruction Companies have found it hard to offload them. The committee suggested that the RBI should consider such a dispensation that allows banks to absorb their written-off losses in a staggered manner and can help them restore their balance sheets. In its report on Non performing assets of financial institutions, the committee expressed deep concerns about the NPAs despite various measures taken by the government and Reserve Bank of India from time to time. The report said instead of declining, the cumulative net volume of NPAs of all banks and financial institutions are only increasing every year.