Lok Sabha Question No. 4285 (UNSTARRED), answered on 2017-08-11
Subject: NPAs of Educational Loan
Ministry: FINANCE
Asked by: DHARMENDRA YADAV, PRITAM GOPINATH MUNDE, ANANDRAO  ADSUL, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. †4285

TO BE ANSWERED ON THE 11 th  AUGUST, 2017, SHRAVANA 20, 1939 (SAKA)

NPAs of Educational Loan

†4285. SHRI DHARMENDRA YADAV:

DR. PRITAM GOPINATH MUNDE:

SHRI ANANDRAO ADSUL:

SHRI SHRIRANG APPA BARNE:

DR. SHRIKANT EKNATH SHINDE:

SHRI VINAYAK BHAURAO RAUT:

Will the Minister of FINANCE be pleased to state:

- (a) whether according to recent reports, the total education loan dues in the banking system had risen and if so, the details thereof;

- (b) whether the Non-Performing Assets (NPAs) on account of education loans disbursed by the banks has registered growth in the recent past;

- (c) if so, the details thereof along with the growth registered during the last three years, bank-wise;

- (d) whether the Government has conducted any study to find out the factors responsible for such increase and if so, the details thereof and the outcome thereof; and

- (e) the details of corrective measures taken by the Government to check such trend?

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

(a) to (c):  Yes, the total education loan dues of banking system has risen. The details of the growth in Non-Performing Assets (NPAs) of Public Sector Banks during the last three years is given below:

Amount 'Rs in Crore'

Year

(As on 31 st  March of)

Outstanding

NPA

|   2015 |   62003.30 |   3536.02 |
|--------|------------|-----------|
|   2016 |    65454.4 |   4777.07 |
|   2017 |    67678.5 |   5191.72 |

Source: Indian Banks' Association (IBA) Bank-wise position of NPA for Education loans during the last three years is Annexed. (d) No such study has been conducted by the Government. (e)  Government  has  modified  IBA  Model  Education  Loan  Scheme  taking  into  account  the  needs  of  the  students.  The  changes,  inter-alia,  include repayment holiday/moratorium of course period + 1 year, additional periods of moratorium taking into account spells of underemployment/unemployment during the life cycle of the loan, extension of repayment period to 15 years to reduce Equated Monthly Instalment (EMI), etc. Government of India has also launched a Credit Guarantee Fund Scheme for Education Loans (CGFEL) for loans uptoRs 7.50 Lakh. The fund provides guarantee to the extent of 75% of the defaulted amount. Further, Banks have been advised to adopt a non-coercive strategy for recovery of education loans.

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## Annex to Reply of Lok Sabha Unstarred Question No. 4285 on NPAs of Educational Loan for answer on 11th  August, 2017

| Bank-wise Position of NPA of education loans ( Rs in   | Bank-wise Position of NPA of education loans ( Rs in   | Bank-wise Position of NPA of education loans ( Rs in   | Bank-wise Position of NPA of education loans ( Rs in   | 'Crore')         |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|------------------|
| S.N.                                                   | Name of Bank                                           | As on 31.03.2015                                       | As on 31.03.2016                                       | As on 31.03.2017 |
| 1                                                      | Allahabad Bank                                         | 40.12                                                  | 34.63                                                  | 49.20            |
| 2                                                      | Andhra Bank                                            | 81.11                                                  | 57.89                                                  | 61.97            |
| 3                                                      | Bank of Baroda                                         | 156.73                                                 | 294.93                                                 | 331.31           |
| 4                                                      | Bank of India                                          | 114.75                                                 | 161.46                                                 | 218.11           |
| 5                                                      | Bank of Maharashtra                                    | 27.56                                                  | 42.12                                                  | 51.08            |
| 6                                                      | Bhartiya Mahila Bank                                   | 0.00                                                   | 0.00                                                   | 0.00             |
| 7                                                      | Canara Bank                                            | 169.16                                                 | 316.60                                                 | 265.49           |
| 8                                                      | Central Bank of India                                  | 192.00                                                 | 238.00                                                 | 317.65           |
| 9                                                      | Corporation Bank                                       | 116.75                                                 | 96.99                                                  | 167.10           |
| 10                                                     | Dena Bank                                              | 36.73                                                  | 41.47                                                  | 49.88            |
| 11                                                     | IDBI Bank                                              | 18.63                                                  | 30.11                                                  | 35.58            |
| 12                                                     | Indian Bank                                            | 250.01                                                 | 527.78                                                 | 671.37           |
| 13                                                     | Indian Overseas Bank                                   | 380.49                                                 | 651.16                                                 | 384.20           |
| 14                                                     | OBC                                                    | 106.79                                                 | 107.81                                                 | 137.41           |
| 15                                                     | Punjab & Sind Bank                                     | 22.69                                                  | 19.23                                                  | 18.80            |
| 16                                                     | Punjab National Bank                                   | 251.53                                                 | 388.67                                                 | 478.03           |
| 17                                                     | Syndicate Bank                                         | 299.66                                                 | 368.33                                                 | 343.00           |
| 18                                                     | UCO Bank                                               | 101.40                                                 | 298.17                                                 | 346.71           |
| 19                                                     | Union Bank of India                                    | 194.88                                                 | 233.83                                                 | 253.49           |
| 20                                                     | United Bank of India                                   | 55.01                                                  | 56.55                                                  | 56.24            |
| 21                                                     | Vijaya Bank                                            | 34.74                                                  | 33.55                                                  | 63.16            |

| 22   | State Bank of India            |   614.00 |   454.00 |   538.17 |
|------|--------------------------------|----------|----------|----------|
| 23   | State Bank of Bikaner & Jaipur |    26.45 |    29.99 |    21.75 |
| 24   | State Bank of Hyderabad.       |    41.08 |    37.28 |    81.83 |
| 25   | State Bank of Mysore           |    40.87 |    44.79 |    66.32 |
| 26   | State Bank of Patiala          |    11.75 |    12.79 |    18.63 |
| 27   | State Bank of Travancore       |   151.14 |   198.94 |   165.24 |
|      | Total                          |  3536.02 |  4777.07 |  5191.72 |

Source: Data provided by IBA