Lok Sabha Question No. 4614 (UNSTARRED), answered on 2018-03-23
Subject: NPAs of Industrial Sector and Farmers
Ministry: FINANCE
Asked by: BHARAT SINGH

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

## UNSTARRED  QUESTION  NO: 4614 TO BE ANSWERED  ON THE 23 rd  MARCH, 2018/CHAITRA 2, 1940 (SAKA)

## QUESTION NPAs OF INDUSTRIAL  SECTOR AND FARMERS

## 4614:  SHRI  BHARAT  SINGH:

Will  the Minister  of FINANCE  be pleased to state:

- (a) the details  of Non  Performing  Assets (NPAs)  of Public  Sector  Banks (PSBs) vis-a-vis private  sector  banks  during  the last ten years;
- (b) the  details   of  NPAs   of  PSBs  related   to  industry   sector vis-a-vis farmers, State/UT/Bank-wise;
- (c) the amount  of funds received  back  by  the PSBs under  mutual  agreement  along with  the quantum  of losses suffered by  banks  therefrom;  and
- (d) the steps taken/likely to  be  taken   by   the  Government  to check  such type  of incidents?

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

## (SHIV PRATAP  SHUKLA)

- (b):  With   regard to  NPAs   of  PSBs  related   to  industry   sector vis-à-vis farmers, category-wise   details   provided   by   RBI  for  GNPAs   of  PSBs,  including   for  the 'Industry'  and 'Agriculture and Allied  Activities'  categories,  as on 31.3.2017,  are at Annex.  State/Union  Territory (UT)-wise  data are not centrally  maintained.
- (a): As per Reserve  Bank  of India (RBI) data on domestic  operations,  the details  of aggregate  gross NPAs  (GNPAs)  of PSBs vis-a-vis private   sector   banks   during   the last ten years are  at Annex.

(c):  As  per  data  reported   by   PSBs,  during   the  financial   year   2016-17,  PSBs recovered   an  amount   of  Rs.  10,899 crore   under One  Time   Settlement,   which   is done on the basis of mutual  agreement  between  the lender  and the borrower,  by way   of  compromise   or  negotiated   settlement,   and  wrote   off  an  amount   of Rs. 9,062 crore.

With  regard  to compromise  or negotiated  settlements,  RBI has advised commercial banks to have Board-vetted  loan recovery  policies,  which  set down, inter alia, norms for permitted  sacrifice  and factors to be taken  into  account  before considering  the same.

The  Securitisation   and  Reconstruction of  Financial   Assets  and  Enforcement   of Security  Interest  Act  was amended  in 2016 to make it more  effective.  Further,  six new Debts Recovery  Tribunals  have been established  to expedite  recovery.

(d):  Number   of  steps  have  been  taken   to  reduce/contain   NPAs   of  banks. Insolvency  and Bankruptcy  Code,  2016 was enacted  for time-bound  resolution  of stressed assets. Further,  the Banking  Regulation  Act,  1949 was amended  last year  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  the insolvency process. In accordance with these directions, banks have filed applications   in  respect   of  these  accounts   before  the  National   Company   Law Tribunal .  Further,   keeping   in  view   the  enactment   of  the  Code,   RBI  has  recently issued  a  revised   framework   for  resolution   of  stressed  assets,  which   provides   for time-bound resolution of high-value stressed accounts, requiring filing of insolvency application under  the Code in case of non-implementation of Resolution  Plan  within  180 days.

In  addition,   under   the  PSB  Reforms   Agenda,   PSBs  have  committed   to  ensure Stressed Asset Management  verticals  for stringent  recovery.

## Annex

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Lok Sabha Unstarred  Question  No. 4614,  for  23.3.2018 Gross Non-Performing  Assets

Amounts

## in crore Rs.

| Bank Group         | Bank Group         | As on 31.03.2008   | As on 31.03.2009   | As on 31.03.2010   | As on 31.03.2011   | As on 31.03.2012   |
|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| PublicSectorBanks  | PublicSectorBanks  | 39,600             | 44,032             | 57,293             | 71,080             | 1,12,489           |
| PrivateSectorBanks | PrivateSectorBanks | 12,976             | 16,888             | 17,384             | 17,972             | 18,315             |
| Bank Group         | As on 31.03.2013   | As on 31.03.2013   | As on 31.03.2014   | As on 31.03.2015   | As on 31.03.2016   | As on 31.03.2017   |
| PublicSectorBanks  | 1,55,890           | 1,55,890           | 2,16,739           | 2,67,065           | 5,02,068           | 6,41,057           |
| PrivateSectorBanks | 19,986             | 19,986             | 22,738             | 31,576             | 48,380             | 73,842             |

Source: RBI (domestic operations)

Category-wise details of gross NPAs of Public Sector Banks,  as on 31.3.2017

Amounts

| Bank                                     | Industry   | Agriculture and Allied Activities   | Services   | Retail Loans   | Other Non- Food Credit   |
|------------------------------------------|------------|-------------------------------------|------------|----------------|--------------------------|
| AllahabadBank                            | 15,104     | 1,320                               | 3,398      | 698            | 0                        |
| Andhra Bank                              | 14,846     | 1,157                               | 1,208      | 458            | -                        |
| Bank ofBaroda                            | 19,669     | 5,139                               | 8,142      | 1,986          | -                        |
| Bank ofIndia                             | 28,651     | 3,814                               | 8,775      | 1,484          | 0                        |
| Bank ofMaharashtra                       | 10,248     | 1,874                               | 4,274      | 484            | 309                      |
| CanaraBank                               | 22,390     | 2,757                               | 2,871      | 1,067          | 2,715                    |
| CentralBank ofIndia                      | 19,667     | 2,579                               | 3,186      | 1,820          | -                        |
| Corporation Bank                         | 12,559     | 823                                 | 2,917      | 746            | -                        |
| DenaBank                                 | 9,065      | 1,671                               | 908        | 746            | 230                      |
| IDBI Bank Limited                        | 30,992     | 1,696                               | 3,517      | 447            | 1,570                    |
| IndianBank                               | 7,249      | 604                                 | 663        | 478            | 593                      |
| IndianOverseasBank                       | 22,785     | 3,646                               | 3,805      | 2,285          | 0                        |
| OrientalBankof Commerce                  | 17,898     | 1,565                               | 2,882      | 515            | 0                        |
| Punjaband SindBank                       | 3,843      | 612                                 | 1,403      | 440            | -                        |
| PunjabNationalBank                       | 36,504     | 6,626                               | 8,126      | 1,864          | 0                        |
| SyndicateBank                            | 9,320      | 2,246                               | 2,486      | 1,610          | -                        |
| UCOBank                                  | 16,030     | 1,232                               | 2,941      | 1,451          | 45                       |
| UnionBank ofIndia                        | 20,475     | 2,635                               | 7,358      | 451            | 8                        |
| UnitedBank ofIndia                       | 7,331      | 1,148                               | 2,045      | 428            | -                        |
| VijayaBank                               | 4,622      | 545                                 | 1,078      | 137            | 0                        |
| StateBank ofIndiaand erstwhileAssociates | 1,40,835   | 13,332                              | 12,703     | 4,201          | 0                        |
| Total                                    | 4,70,084   | 57,021                              | 84,686     | 23,795         | 5,470                    |

Source: RBI (domestic operations)

in crore Rs.