Lok Sabha Question No. 6604 (UNSTARRED), answered on 2018-04-06
Subject: Loan Recovery by PSBs
Ministry: FINANCE
Asked by: R.K. BHARATHI MOHAN, KRISHNAN NARAYANASAMY RAMACHANDRAN, V. SATHYABAMA, PR. SENTHILNATHAN

## GOVERNMENT  OF INDIA

## MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL  SERVICES

## LOK SABHA

UNSTARRED  QUESTION  NO: 6604 TO BE ANSWERED  ON THE 6th APRIL,  2018/CHAITRA  16, 1940 (SAKA)

6604:

## QUESTION LOAN RECOVERY BY PSBs

SHRI BHARATHI  MOHAN  R.K.: SHRIMATI V.  SATHYA  BAMA:

SHRI  K.N.  RAMACHANDRAN: SHRI PR. SENTHIL NATHAN:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether  the Government  had taken  any  concrete  steps to find the exact volume  and value  of NPAs  and defaulters  of Public  Sector  Banks  (PSBs);
- (b) if so, the details  thereof,  Bank-wise;
- (c) the  details   of  action   taken   by   the  Government   during   the  last  four   years   in  this regard;
- (d) whether   the  Government   has  taken   any   stringent   measures   to  recover   the  loan amount  from the NPAs  and wilful  defaulters  and if so, the details  thereof;  and
- (e) the list  of wilful  defaulters/NPAs  having  Rs. 100 crore  or more  of banks,  bank-wise?

## ANSWER

## (SHIV PRATAP  SHUKLA)

## To be answered by THE MINISTER  OF STATE  IN THE  MINISTRY  OF FINANCE

(a)  to  (d):  The   bank-wise   amount   of  Non-Performing Assets  (NPAs)   of  Public   Sector Banks (PSBs), as per Reserve  Bank of India (RBI) global  operations  data,  and the bankwise  number   of  wilful   defaulters   and  related   amount   in  respect   of  wilful   defaulters   of PSBs, as per data reported  by  PSBs, as on 31.12.2017,  are at Annex.

To reduce/contain  NPAs  of banks,  the Insolvency  and Bankruptcy Code,  2016 has been enacted  for  time-bound   resolution   of  stressed  assets.  Further,   the  Banking   Regulation Act,  1949 has been amended  to provide  for authorisation by the Government  to RBI, for issuing  directions  to banks  to initiate  the insolvency  resolution  process under the Code. Under  the provisions  of this amending  legislation,  RBI has issued directions  to certain banks for referring  12 accounts,  with  outstanding  amounts  greater  than  Rs. 5,000 crore and with  60% or more  classified  as non-performing  as of 31.3.2016,  to initiate  insolvency resolution  process under  the Code.  In accordance  with  these directions,  banks  have filed applications   in  respect   of  these  accounts   before  the  National   Company Law  Tribunal .

A number  of steps have been taken  to reduce/contain  (NPAs)  of banks,  and to reduce incidence  of default  on account  of and effect recovery  from  wilful  defaulters.

Further,  keeping  in view  the enactment  of the Code,  RBI has issued a revised  framework for resolution  of stressed assets, which  provides  for time-bound  resolution  of high-value stressed accounts. The  Securitisation   and  Reconstruction   of  Financial   Assets  and Enforcement  of Security  Interest (SARFAESI)  Act has been amended  to make  it more effective.  Further,  six new  Debts Recovery  Tribunals  have been established  to expedite recovery.  In addition,  under the PSB Reforms  Agenda,  PSBs have committed, inter-alia, to create Stressed Asset Management  verticals  for stringent  recovery  and ensure  clean and effective post-sanction follow-up for large credit exposures through specialised monitoring  agencies.

(e): RBI has informed  that  it is unable  to disclose  borrower-wise credit  information  under the  provisions   of  section   45E  of  the  Reserve   Bank of  India  Act,   1934.  Section   45E provides  that  credit  information submitted  by  a bank  shall  be treated  as confidential  and not to be published  or otherwise disclosed.

To reduce incidence  of default  on account  of and effect recovery  from wilful  defaulters, as per RBI's instructions,  wilful  defaulters  are not sanctioned  any  additional  facilities  by banks or financial  institutions, their  unit  is debarred  from  floating  new  ventures  for five years,  and lenders  may  initiate  criminal  proceedings  against  them,  wherever  necessary.  As per  data  reported   by   PSBs,  as  on  31.12.2017,   2,108  FIRs  have  been  registered   against wilful  defaulters,  8,462 suits have been filed for recovery  from  them,  and action  has been initiated   under the  SARFAESI   in  respect  of  6,962  cases  of  wilful   defaulters.   SEBI Regulations   have  been  amended   to  debar  wilful   defaulters   and  companies   with   wilful defaulters  as promoters/directors from accessing capital  markets  to raise funds. Further, the Insolvency  and Bankruptcy Code has been amended  to debar wilful  defaulters  from participating in the insolvency  resolution  process.

GNPAs, and the number  of wilful  defaulters  and related amount , as on 31.12.2017 Amounts in crore  Rs.

| Bank                    | GNPAs    | Wilfuldefaulters   | Wilfuldefaulters   |
|-------------------------|----------|--------------------|--------------------|
|                         |          | No.                | Amount             |
| AllahabadBank           | 23,261   | 164                | 3,590              |
| AndhraBank              | 21,599   | 401                | 3,979              |
| Bank ofBaroda           | 48,480   | 255                | 5,600              |
| Bank ofIndia            | 64,249   | 403                | 5,418              |
| Bank ofMaharashtra      | 18,128   | 137                | 985                |
| CanaraBank              | 40,312   | 490                | 4,590              |
| CentralBankof India     | 32,491   | 772                | 6,146              |
| Corporation Bank        | 21,818   | 122                | 2,182              |
| DenaBank                | 14,169   | 227                | 1,861              |
| IDBI BankLimited        | 50,622   | 85                 | 3,937              |
| IndianBank              | 9,595    | 64                 | 1,063              |
| IndianOverseasBank      | 33,267   | 527                | 4,485              |
| OrientalBankof Commerce | 27,551   | 429                | 4,236              |
| Punjab&SindBank         | 7,040    | 27                 | 283                |
| PunjabNationalBank      | 57,519   | 1,084              | 14,588             |
| SyndicateBank           | 21,103   | 204                | 1,163              |
| StateBank ofIndia       | 1,99,155 | 1,664              | 28,257             |
| UCOBank                 | 25,382   | 651                | 5,654              |
| UnionBankof India       | 40,988   | 832                | 5,376              |
| UnitedBank ofIndia      | 13,721   | 388                | 1,739              |
| VijayaBank              | 6,829    | 137                | 4,917              |
| Total                   | 7,77,280 | 9,063              | 1,10,050           |

Sources: (1) RBI - for GNPAs

(2) Banks - for wilful defaulters