Lok Sabha Question No. 2183 (UNSTARRED), answered on 2017-07-28
Subject: Policy Governing the Loan Waiver Schemes
Ministry: FINANCE
Asked by: M. CHANDRAKASI

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

## LOK SABHA UNSTARRED QUESTION NO: 2183 TO BE ANSWERED ON THE 28th JULY, 2017/SHRAVANA 06, 1939 (SAKA)

## QUESTION POLICY GOVERNING THE LOAN WAIVER SCHEMES

Will the Minister of FINANCE be pleased to state:

- a) the details of the policy,  principles and broad outlines governing the loan waiver schemes;
- c) the details of sector-wise loan waivers granted by Government including agriculture, Small and Medium Enterprises, infrastructure projects, education, corporate sector and others during the last five years; and
- b) whether the RBI guidelines permitted waive off outstanding Non-Performing Assets (NPAs) of public sector banks and if so, the details thereof; long
- d) whether the Government intends to review and down strict norms for allowing loan waivers only for larger public welfare as compared to individual benefits and if so, the details thereof? lay

## ANSWER To be answered by

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

(a) and (b): As per Reserve Bank of India (RBI) master circular on Income Recognition and Asset Classification (IRAC) norms, every bank has to have its own Board approved recovery policy   including the manner and   procedure of write-offs. Loans are written off after appropriate  provisions have been made to take advantage of tax benefits and  capital optimization:

(c) and (d): The details of write-offs done by Public Sector Banks for the last five years are annexed.

| BANKWISE WRITE OFF DATA          | BANKWISE WRITE OFF DATA         | BANKWISE WRITE OFF DATA   | (Rs in crore)   | (Rs in crore)   | (Rs in crore)   |
|----------------------------------|---------------------------------|---------------------------|-----------------|-----------------|-----------------|
| Bank Name                        | 2013                            | 2014                      | 2015            | 2016            | 2017            |
| Allahabad Bank                   | 1,352                           | 782                       | 2,109           | 2,126           | 2,442           |
| Andhra Bank                      | 334                             | 263                       | 1,124           | 814             | 1,623           |
| Bank of Baroda                   |                                 | 964                       | 1,563           | 1,554           |                 |
| Bank of India                    | 2,415                           | 1,767                     | 866             | 2,374           | 7,346           |
| Bank of Maharashtra              | 663                             | 401                       | 264             | 903             | 1,374           |
| Bharatiya Mahila Bank Ltd        |                                 | 0                         | 0               | 0               |                 |
| Canara Bank                      | 1,535                           | 1,591                     | 1,472           | 3,387           | 5,545           |
| Central Bank of India            | 1,061                           | 1,995                     | 1,386           | 1,334           | 2,396           |
| Corporation Bank                 | 709                             | 463                       | 779             | 2,495           | 3,574           |
| Dena Bank                        | 237                             | 479                       | 515             | 760             | 833             |
| IDBI Bank Limited                | 383                             | 1,393                     | 1,609           | 5,459           | 2,868           |
| Indian Bank                      | 520                             | 628                       | 550             | 926             | 437             |
| Indian Overseas Bank             | 1,642                           | 1,474                     | 2,087           | 2,067           | 3,066           |
| Oriental Bank of Commerce        | 1,416                           | 1,252                     | 925             | 1,668           | 2,308           |
| Punjab & Sind Bank               | 50                              | 204                       | 263             | 335             | 491             |
| Punjab National Bank             | 997                             |                           | 5,996           | 6,485           | 9,205           |
| Syndicate Bank                   | 1,297                           | 1,025                     | 1,055           | 1,430           | 1,271           |
| UCO Bank                         | 617                             | 1,423                     | 0               | 1,573           | 1,937           |
| Union Bank of India              | 1,129                           | 913                       | 931             | 792             |                 |
| United Bank of India             | 1,094                           | 481                       | 761             | 649             | 714             |
| Vijaya Bank                      | 543                             | 296                       | 791             | 510             | 1,068           |
| Nationalised Banks               | 20,351                          | 19,739                    | 25,046          | 37,642          | 54,110          |
| State Bank of Bikaner & Jaipur   | 463                             | 399                       | 363             | 643             | 1,560           |
| State Bank of Hyderabad          | 343                             | 31                        | 355             | 1,204           | 1,430           |
| State Bank of India              | 5,594                           | 13,177                    | 21,303          | 15,955          | 20,339          |
| State Bank of Mysore             | 275                             | 403                       | 740             | 588             | 161             |
| State Bank of Patiala            | 28                              | 463                       | 755             | 1,156           | 3,528           |
| State Bank of Travancore         | 176                             | 196                       | 456             | 398             | 556             |
| SBI Group                        | 6,880                           | 14,670                    | 23,973          | 19,944          | 27,574          |
| Public Sector Banks Source: RBI; | 27,231 March- 2017 (Prov. Data) | 34,409                    | 49,018          | 57,586          | 81,683          |