Lok Sabha Question No. 2968 (UNSTARRED), answered on 2018-08-03
Subject: Repayment of loans by Industries
Ministry: FINANCE
Asked by: A.T. (NANA) PATIL, BANSHILAL MAHTO

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

## LOK SABHA

TO BE ANSWERED  ON THE 3 rd  AUGUST,  2018/SHRAVANA 12, 1940 (SAKA)

UNSTARRED  QUESTION  NO:

2968

## QUESTION REPAYMENT OF LOANS BY INDUSTRIES

## 2968: SHRI A.T. NANA PATIL: DR.  BANSHILAL MAHATO:

Will  the Minister  of FINANCE  be pleased to state:

- a) the  number   of  industrialists availed   loans   by   banks/Governments, State/UT-wise including  Chhattisgarh;
- b) whether  these industrialists are making  timely  repayment  of the loan  instalments;
- c) if  not,   the  details   of  such  industrialists who   are  defaulting/not   repaying   the  loan instalments  and having  outstanding  amount,  bank,  State/UT-wise;
- d) whether  the Reserve  Bank of India has ordered  to recover  the amount  of loan  from such highly  indebted  industrialists/industries, if so, the details  thereof;  and
- e) the action  taken/proposed to be taken by the Government against such industrialists/industries to recover  the outstanding  loan,  industry-wise?

## ANSWER

## (SHRI SHIV PRATAP  SHUKLA)

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

- (a)  and (b): Reserve  Bank of India (RBI) has apprised  that  required  information  is not available.   However,   RBI  has  informed   that   as  per  returns   submitted   by   Scheduled Commercial   Banks  (SCBs),  as  on  31.3.2018,   91,116  borrowers   were   having   credit exposure of  Rs.  5  crore   and  above,   out  of  which,   accounts   of  7,960  borrowers   were classified  as non-performing  assets (NPAs).
- (d) Under  the provisions  of section 35AA  of the Banking  Regulation  Act,  1949, RBI has directed   banks   to  file  insolvency applications   against   39  large   borrowers.   Accordingly, cases have been filed under the Insolvency  and Bankruptcy Code,  2016 (IBC) before the National  Company  Law Tribunal  (NCLT)  in respect of the said borrowers,  which  involve an  amount  of about  Rs. 2.69 lakh  crore  of funded exposure  (as of December  2017).  RBI has also issued a revised  framework  for resolution  of stressed assets, which  provides  for time-bound  resolution  of high-value  stressed accounts.
- (c) RBI has informed  that  under the provisions  of section 45E of the Reserve  Bank of India  Act,   1934,  RBI  is  prohibited   from   disclosing   credit   information. Section   45E provides  that  credit  information submitted  by  a bank  shall  be treated  as confidential  and not to be published  or otherwise disclosed.

(e) A number  of measures  have been taken  to expedite  and enable  resolution  of NPAs  of Scheduled  Commercial  Banks.   IBC has been enacted  to create a unified  framework  for resolving  insolvency  and bankruptcy matters.  Under  this,  by  adopting  a creditor-in-saddle approach,  with  the interim  resolution  professional  taking  over management  of affairs of corporate  debtor  at the outset,  the incentive  to resort to abuse of the legal  system has been  taken   away.   This,   coupled   with   debarment   of  wilful   defaulters   and  persons associated  with  NPA  accounts  from the resolution  process, has effected a fundamental change in the creditor-debtor  relationship. The Banking  Regulation  Act,  1949 has been amended to provide  for authorisation to RBI to issue directions  to banks  to initiate  the insolvency  resolution  process under IBC. As per RBI's directions,  cases have been filed under IBC before the NCLT  in respect of 39 large  defaulters,  involving  funded exposure amounting  to about  Rs. 2.69 lakh  crore  (as of December  2017).

In  addition,   under  the  PSBs  Reforms   Agenda,   PSBs  have  created   Stressed  Asset Management  verticals  for stringent  recovery,  segregated  pre- and post-sanction  follow-up roles for clean and effective monitoring, initiated  creation  of online  one-time  settlement platforms  and committed  to monitoring  large-value  accounts  by  tying  up with  Agencies for Specialised  Monitoring for loans of Rs. 250 crore  and above.

The Securitisation  and Reconstruction of Financial  Assets and Enforcement  of Security Interest Act,  2002 has been amended  to make  it more  effective with  provision  for three months  imprisonment  in case the borrower  does not provide  asset details  and for the lender   to  get  possession  of  mortgaged   property   within   30  days.   Also, six  new   Debts Recovery  Tribunals  have been established to  expedite  recovery.