Lok Sabha Question No. 330 (UNSTARRED), answered on 2017-02-03
Subject: Mission Indradhanush
Ministry: FINANCE
Asked by: KINJARAPU RAM MOHAN NAIDU, PARVESH SAHIB SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 330

TO BE ANSWERED ON THE 3 rd  February 2017/ Magha 14, 1938 (SAKA)

## Mission Indradhanush QUESTION

## 330. SHRI RAM MOHAN NAIDU KINJARAPU: SHRI PARVESH SAHIB SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  has  launched  Mission  Indradhanush  to  improve  the  efficiency  and functioning of all public sector banks and if so, the details thereof including salient features of the mission;
- (b) whether the Non Performing Assets (NPAs) of Public Sector Banks (PSBs) have decreased since the launch of Mission Indradhanush;
- (c) if  so,  the  details  and  the  status  of  total  NPAs  along  with  the  loan  amount  recovered/written  off during each of the last three years and the current years, bank and State-wise;
- (d) whether  the  Banks  Board  Bureau  (BBB)  has  been  constituted  and  if  so,  the  details  thereof including composition, objectives and functions of the Bureau;
- (e) whether the BBB has suggested any strategies to improve the functioning of PSBs; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

The Minister of State in the Ministry of Finance (SHRI SANTOSH KUMAR GANGWAR)

(a):    In  August  2015,  the  Government introduced Indradhanush Plan for revamp of Public Sector Banks. Under the Indradhanush Plan action related to (i) Appointment (ii) Bank Board Bureau (iii) Capitalization (iv) De-stressing PSBs (v) Empowerment (vi) Framework of Accountability (vii) Governance Reforms has been initiated by the Government.

- (b) & (c): The details of Gross Advances, Gross Non-Performing Assets (GNPA) amount and Gross NPA ratio of Public Sector Banks (PSBs) since launch of Indradhanush Plan are as under:

(Rs. in crore)

| PUBLIC SECTOR BANKS (PSBs)   | PUBLIC SECTOR BANKS (PSBs)   | PUBLIC SECTOR BANKS (PSBs)   | PUBLIC SECTOR BANKS (PSBs)   |
|------------------------------|------------------------------|------------------------------|------------------------------|
|                              | GROSS ADVANCES               | GROSS NPA                    | GNPA RATIO                   |
| FY 2016                      | 51,04,914                    | 5,02,068                     | 9.83%                        |
| Sep -2016                    | 49,86,144                    | 5,89,502                     | 11.82%                       |

Source : RBI

The details of the amount written off by PSBs since launch of the Indradhanush Plan are as under:

| Public Sector Bank data on Write-offs   | Public Sector Bank data on Write-offs   | Public Sector Bank data on Write-offs   |
|-----------------------------------------|-----------------------------------------|-----------------------------------------|
|                                         | (Rs.                                    | (Rs.                                    |
| Bank Name                               | Write offs                              | Write offs                              |
|                                         | Mar-2016                                | Sep-16                                  |
| Public Sector Banks                     | 59,547                                  | 25,825                                  |
| Source: RBI/PSBs                        |                                         |                                         |

The details of loan amount recovered / written off is at Annex I & II.

(d):  The Government of India, on February 28, 2016 announced the constitution and composition of the Bank  Board  Bureau  (BBB).  The  Bureau  started  functioning  from  April  01,  2016  as  an  autonomous recommendatory body with three ex-officio members and three expert members in addition to Chairman. Chairman and members are part time. The Bureau is constituted as follows:

|   Sl. No. | Name/Designation                                    | Designation       |
|-----------|-----------------------------------------------------|-------------------|
|         1 | Shri Vinod Rai, Former CAGof India                  | Chairman          |
|         2 | Secretary, Department of Financial Services         | Ex-officio member |
|         3 | Secretary, Department of Public Enterprises         | Ex-officio member |
|         4 | Deputy Governor, Reserve Bank of India              | Member            |
|         5 | Dr. Anil K. Khandelwal, Former CMDof Bank of Baroda | Member            |
|         6 | Shri H.N. Sinor, Former Joint MD, ICICI Bank        | Member            |
|         7 | Ms Roopa Kudva, Former MD&CEO, CRISIL               | Member            |

The functions of the Banks Board Bureau are as follows:

- (i).    To  be  responsible  for  the  selection  and  appointment  of  Board  of  Directors  in  Public  Sector  Banks (PSBs) and Financial Institutions (FIs) (Whole-time Directors and Non-Executive Chairman).
- (ii).    To  advise  the  Government  on  matters  relating  to  appointments,  confirmation  or extension of tenure and termination of services of the Board of Directors of the above mentioned levels.
- (iii).    To  advise  the  Government  on  the  desired  structure  at  the  Board  level  and  for  senior  management personnel for each PSB and FI.
- (iv).   To advise the Government on the formulation and enforcement of a code of conduct and ethics for managerial personal in PSBs/FIs.
- (v). To  advise  the Government  on  evolving  suitable  training  and  development  programmes  for management personnel in PSBs/FIs.
- (vi).   To build a data bank containing data relating to the performance of PSBs/FIs, its senior management and the Board of Directors and share the same with Government.
- (vii).  To help banks to develop a robust leadership succession plan for critical positions that would arise in future through appropriate HR process including performance management systems.
- (viii).  To help banks in terms of developing business strategies and capital raising plan etc.
- (e) & (f):  The mandate given to the Bureau is to help banks in terms of developing business strategies. In fulfilling this mandate, the Bureau does not envisage formally prescribing specific strategy for each bank as the Bureau is mindful of the need to have fully empowered boards which should drive the overall strategy of the bank within its risk capacity and also act as custodians who would reconcile the diverse interests of various stakeholders.

*******

## NPAs of PSBs recovered through various channels

*******

(Amount in Rs. Crore)

|                      | 2013-14              | 2013-14           | 2013-14           | 2014-15              | 2014-15           | 2014-15           | 2015-16              | 2015-16           | 2015-16           |
|----------------------|----------------------|-------------------|-------------------|----------------------|-------------------|-------------------|----------------------|-------------------|-------------------|
| Channels of Recovery | No of cases referred | Amoun t involve d | Amount recovere d | No of cases referred | Amoun t involve d | Amount recovere d | No of cases referred | Amoun t involve d | Amount recovere d |
| LokAdalat            | 11,67,05 9           | 17016             | 1414              | 25,96,35 1           | 27020             | 931               | 42,44,80 0           | 69017             | 3134              |
| DRTs                 | 24,813               | 45350             | 4460              | 18397                | 53203             | 3484              | 19,133               | 57439             | 5590              |
| SARFAES I            | 1,81,216             | 86783             | 22178             | 1,66,804             | 146306            | 23434             | 1,59,147             | 65008             | 11033             |
| Total                | 13,73,08 8           | 149149            | 28052             | 27,81,55 2           | 226529            | 27849             | 44,23,08 0           | 191464            | 19757             |

Source: RBI

| ANNEX-II                               | ANNEX-II           | ANNEX-II           | ANNEX-II           | ANNEX-II           |
|----------------------------------------|--------------------|--------------------|--------------------|--------------------|
| Public Sector Banks-wise               | data on Write-offs | data on Write-offs | data on Write-offs | data on Write-offs |
|                                        | (Rs in crore)      | (Rs in crore)      | (Rs in crore)      | (Rs in crore)      |
|                                        | During FY Ended at | During FY Ended at | During FY Ended at | During FY Ended at |
| Bank Name                              | Mar-14             | Mar-15             | Mar-16             | Sep-16             |
| ALLAHABAD BANK                         | 782                | 2,109              | 2,097              | 483                |
| ANDHRABANK                             | 263                | 1,124              | 1,179              | 404                |
| BANK OF BARODA                         | 964                | 1,564              | 1,664              | 1,358              |
| BANK OF INDIA                          | 1,767              | 801                | 2,374              | 1,993              |
| BANK OF MAHARASHTRA                    | 401                | 264                | 903                | 351                |
| BHARATIYA MAHILA BANK LTD.             | 0                  | 0                  | 0                  | -                  |
| CANARA BANK                            | 1,591              | 1,472              | 3,387              | 1,407              |
| CENTRAL BANK OF INDIA                  | 1,995              | 1,386              | 1,279              | 503                |
| CORPORATION BANK                       | 463                | 779                | 477                | 430                |
| DENA BANK                              | 479                | 515                | 1,488              | 268                |
| IDBI BANK LIMITED                      | 1,393              | 1,609              | 5,459              | 920                |
| INDIAN BANK                            | 628                | 550                | 926                | 808                |
| INDIAN OVERSEAS BANK                   | 1,474              | 3,131              | 2,578              | 408                |
| ORIENTAL BANK OF COMMERCE              | 1,252              | 925                | 1,668              | 533                |
| PUNJAB AND SIND BANK                   | 204                | 263                | 335                | 118                |
| PUNJAB NATIONAL BANK                   | 1,947              | 6,587              | 7,340              | 2,505              |
| SYNDICATE BANK                         | 1,025              | 1,527              | 1,995              | 446                |
| UCO BANK                               | 1,423              | 1,401              | 1,573              | 20                 |
| UNION BANK OF INDIA                    | 913                | 931                | 792                | 30                 |
| UNITED BANK OF INDIA                   | 481                | 761                | 649                | 127                |
| VIJAYA BANK                            | 296                | 791                | 510                | 433                |
| Nationalised Banks                     | 19,739             | 28,489             | 38,674             | 13,545             |
| STATE BANK OF BIKANER AND JAIPUR       | 399                | 363                | 1,399              | 601                |
| STATE BANK OF HYDERABAD                | 31                 | 355                | 1,569              | 15                 |
| STATE BANK OF INDIA                    | 13,177             | 21,313             | 15,763             | 10,673             |
| STATE BANK OF MYSORE                   | 403                | 740                | 588                | 3                  |
| STATE BANK OF PATIALA                  | 463                | 755                | 1,156              | 902                |
| STATE BANK OF TRAVANCORE               | 196                | 526                | 398                | 86                 |
| State Bank of India and its Associates | 14,670             | 24,052             | 20,873             | 12,280             |
| Public Sector Banks                    | 34,409             | 52,542             | 59,547             | 25,825             |

*******