Lok Sabha Question No. 3394 (UNSTARRED), answered on 2017-08-04
Subject: Restructuring of Loans of Corporate and Farmers
Ministry: FINANCE
Asked by: HEMAMALINI, BHARTRUHARI MAHTAB

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

LOK SABHA UNSTARRED QUESTION NO: 3394

## QUESTION

## RESTRUCTURING OF LOANS OF CORPORATE AND FARMERS

3394: SHRIMATI HEMA MALINI AND SHRI BHARTRUHARI MAHTAB:

Will the Minister of FINANCE be pleased to state:

- a) whether the Government has restructured loans of corporate and farmers to deal with the genuine and willful defaulters separately, if s0, the details thereof along with the number of corporate and farmers that have availed the benefits and the amount restructured during each of the last three
- b) whether the Government has ascertained the impact of such restructuring of loan on the NonPerforming Assets (NPAs) of the bank; if so, the details thereof and if not; the reasons therefor along with the likely benefits of such restructuring to the banks;
3. c)
- d) the other steps taken/being taken by the Government in this regard?
5. years and the current year; StatelUT and Bank-wise;
6. whether the Government has received complaints of corruption/irregularities in such restructuring of loans in the country during the said period, if so, the details thereof, Bank-wise and the reasons therefor along with the action taken on such complaints so far; and

## ANSWER To be answered by

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a) to (b): Bank-wise restructured loans of Industry and Agriculture and Allied Activities during the last three financial years is annexed. State-wise data is not centrally maintained.

Prior to April 1 2015, asset classification benefit was available to borrowers who underwent restructuring in accordance with RBI guidelines on Income Recognition and Asset Classification (IRAC) norms. Since April 01, 2015, non-performing assets, upon restructuring would continue to have the same asset classification as to restructuring: prior

- (c) Whenever any irregularities are found or observed on the part of Bank's officials, the Banks initiate action as per their extant rules and commensurate punishment is awarded to delinquent employees based on the seriousness of wrongdoings as per Bank's disciplinary rules.
- (d) Banks have been provided tools like Corporate Debt Restructuring, formation of JLFs, Flexible structuring for   long term project loans Debt   Restructuring (SDR) and Sustainable Structuring of Stressed Assets (S4A) for faster resolution of Stressed Assets .

Sector specific measures for sectors like Roads (one time fund infusion by NHAI intervention in the stalled project) , Power sector (UDAY scheme) Steel sector (notification of Minimum Import Price) have also been taken to give a boost to the sector so that stress be reduced.

An Ordinance {Banking Regulation (Amendment) Ordinance, 2017} has been promulgated on Ath process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016 May

(IBC)

| Bank Name                        |           |                    |           | (Amount Rs:in Crore) Agriculture and Allied Activities   | (Amount Rs:in Crore) Agriculture and Allied Activities   | (Amount Rs:in Crore) Agriculture and Allied Activities   |
|----------------------------------|-----------|--------------------|-----------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
|                                  | 31-Mar-15 | Industry 31-Mar-16 | 31-Mar-17 | 31-Mar-15                                                |                                                          | 31-Mar-17                                                |
| ALLAHABAD BANK                   | 15,478    | 7,457              | 4,127     | 173                                                      | 68                                                       | 36                                                       |
| ANDHRA BANK                      | 11,687    | 10,866             |           | 155                                                      | 65                                                       | 38                                                       |
| BANK OF BARODA                   | 17,661    | 10,993             | 6,980     | 965                                                      | 234                                                      | 732                                                      |
| BANK OF INDIA                    | 12,191    | 6,922              | 5,501     | 0                                                        | 61                                                       | 31                                                       |
| BANK OF MAHARASHTRA              | 6,307     | 3,139              | 1,836     | 491                                                      | 660                                                      | 434                                                      |
| BHARATIYA MAHILA BANK LTD        | 0         | 0                  | 0         | 0                                                        | 0                                                        |                                                          |
| CANARA BANK                      | 19.499    | 10,336             | 7,523     | 359                                                      | 239                                                      | 101                                                      |
| CENTRAL BANK OF INDIA            | 13,524    | 8,441              | 6,186     | 4,984                                                    | 338                                                      | 336                                                      |
| CORPORATION BANK                 | 11,152    | 7,791              | 5,435     | 112                                                      |                                                          | 41                                                       |
| DENA BANK                        | 6,378     | 4,367              | 2,671     | 82                                                       | 168                                                      | 260                                                      |
| IDBI BANK LIMITED                | 12,200    |                    | 8,248     | 141                                                      | 61                                                       | 64                                                       |
| INDIAN BANK                      | 9,220     | 5,039              | 3,620     | 58                                                       | 54                                                       | 372                                                      |
| INDIAN OVERSEAS BANK             | 12,566    | 9,431              |           | 263                                                      | 272                                                      | 56                                                       |
| COMMERCE                         | 15,555    | 8,965              | 3,689     | 444                                                      | 1,417                                                    | 1,102                                                    |
| PUNJAB AND SIND BANK             | 7,721     | 3,647              | 1,415     | 18                                                       | 91                                                       | 0                                                        |
| PUNJAB NATIONAL BANK             | 22,820    | 16,282             | 10,344    | 229                                                      | 170                                                      | 19                                                       |
| SYNDICATE BANK                   | 7,134     | 3,889              | 2,580     | 800                                                      | 992                                                      | 1,659                                                    |
| UCO BANK                         | 0         | 0                  | 4,512     | 0                                                        | 0                                                        | 25                                                       |
| UNION BANK OF INDIA              | 12,319    | 6,970              | 3,605     | 165                                                      | 453                                                      | 1,048                                                    |
| UNITED BANK OF INDIA             | 6,480     | 5,387              | 4,264     | 361                                                      | 252                                                      | 113                                                      |
| VIJAYA BANK                      | 4,839     | 1,915              | 995       | 62                                                       | 83                                                       | 71                                                       |
| STATE BANK OF BIKANER AND JAIPUR | 0         | 0                  | 0         | 6,708                                                    | 5,086                                                    | 2,159                                                    |
| STATE BANK OF HYDERABAD          | 6,816     | 4,618              | 2,104     | 23                                                       | 14                                                       | 13                                                       |
| STATE BANK OF INDIA              | 48,880    | 21,456             | 31,762    | 201                                                      | 204                                                      | 0                                                        |
| STATE BANK OF MYSORE             | 1,920     | 592                | 405       | 856                                                      | 692                                                      | 356                                                      |
| STATE BANK OF PATIALA            | 9,176     | 7,169              | 2,862     | 87                                                       | 56                                                       |                                                          |
| STATE BANK OF TRAVANCORE         | 3,540     |                    | 837       | 32                                                       | 2                                                        |                                                          |
| Public Sector Banks              | 2,95,065  | 1,78,602           | 4,35,994  | 1,771                                                    | 11,808                                                   | 9,067                                                    |