Lok Sabha Question No. 2024 (UNSTARRED), answered on 2017-12-29
Subject: Gross NPAs
Ministry: FINANCE
Asked by: KALYAN BANERJEE

## GOVERNMENT  OF INDIA

## MINISTRY OF FINANCE DEPARTMENT  OF FINANCIAL  SERVICES LOK SABHA

UNSTARRED  QUESTION  NO:  2024 TO BE ANSWERED  ON THE 29 th  DECEMBER,  2017/PAUSHA  08, 1939 (SAKA)

## QUESTION GROSS  NPAs

## 2024:  SHRI KALYAN BANERJEE:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether   the  Gross  Non-Performing   Assets  (NPAs)   of  the  Public   Sector   Banks   have  almost   doubled from September  2015 and reach about  15 lakh  crore  in September  2017 and if so, the details   of  the NPAs during  the last five years and  the reasons therefor;
- (c) the steps taken/being  taken  by  the Government  and observations/suggestions of committees  of RBI to minimise  the NPAs?
- (b) whether  the Government  proposes to review  the bail  in plan  for banks  and if so, the  details  thereof;  and

## ANSWER

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

## (SHIV PRATAP  SHUKLA)

- (a) As per Reserve  Bank of India's  data for domestic  operations,  Gross Non-Performing  Assets (GNPAs)  of Public  Sector  Banks (PSBs) as on 30.9.2015  were  Rs. 2,99,688  crore  and increased  to  Rs. 6,89,806  crore  as on 30.9.2017. The  GNPAs  of PSBs for last five years are at  Annexure.
- (b)  A  provision   related   to  the  bail-in   instrument as  one  of  the  methods   of  resolution   of  specified   service providers,   including   banks,   is  contained   in  the  Financial   Resolution   and  Deposit   Insurance   Bill,   2017, introduced  in Lok  Sabha on 10.8.2017, and  stands referred  to a Joint  Committee  of Parliament.
- As per RBI inputs,  reasons for spurt  in stressed assets in recent  time  have been observed  to include, inter alia , factors such as aggressive  lending  practices  during  upturn,  laxity  in credit  risk  appraisal  and loan  monitoring in banks  and wilful  default  or loan  frauds in some cases, and  slowdown  in the global  economy.
- (c) The Insolvency  and Bankruptcy Code,  2016 has been enacted and the Securitisation  and Reconstruction of Financial  Assets and Enforcement  of Security  Interest  (SARFAESI)  and the Recovery  of Debts due to Banks  and  Financial   Institutions   (RDDBFI) Acts have  been  amended   to  support   banks   in  their   recovery efforts.

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Lok Sabha  Unstarred  Parliament  Question  No. 2024,  for  29.12.2017

Amounts

Reserve  Bank of India (RBI) has introduced  Scheme for Sustainable  Structuring  of Stressed Assets, Strategic Debt Restructuring Scheme,  Flexible  Structuring  (5/25) schemes for restructuring debt, issued guidelines  on Joint   Lenders'   Forum   for  resolution,   and  issued  Corrective Action   Plan   for  rectification, recovery   and restructuring processes, to address stress because of Non-performing Assets.

## Annexure

| Bank Group         | Gross Non-PerformingAssets   | Gross Non-PerformingAssets   | Gross Non-PerformingAssets   | Gross Non-PerformingAssets   | Gross Non-PerformingAssets   |
|--------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|
|                    | 31.3.2013                    | 31.3.2014                    | 31.3.2015                    | 31.3.2016                    | 31.3.2017                    |
| PublicSector Banks | 1,55,890                     | 2,16,739                     | 2,67,065                     | 5,02,068                     | 6,41,057                     |

Source:  Reserve  Bank of  India (Domestic  Operations)