Lok Sabha Question No. 327 (STARRED), answered on 2017-03-24
Subject: Financing Methods
Ministry: FINANCE
Asked by: ANANDRAO  ADSUL, RAM KUMAR SHARMA KUSHWAHA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO.*327

TO BE ANSWERED ON THE 24 TH  March, 2017/ Chaitra 3, 1939 (SAKA)

## Financing Methods

## *327.   SHRI ANANDRAO ADSUL: SHRI RAM KUMAR SHARMA:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Public  Sector  Banks  are  employing  new  methods  of financing  like  ecosystem  financing,  aggregation  financing,  supply-chain financing and internet-based financing in line with evolving corporate trends and if so, the details thereof;
- (b) whether  the  amount/percentage  of  Non-Performing  Assets  (NPAs)  of banks  has  increased  in  2016-17 vis-a-vis 2015-16  and  if  so,  the  details thereof,  sector-wise  including  Micro,  Small  and  Medium  Industries  and Agriculture; and
- (c) the steps taken/being taken by the Government to recover NPAs?

## ANSWER

THE FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (c):  A Statement is laid on the Table of the House.

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STATEMENT  FOR  LOK  SABHA  STARRED  QUESTION  NO.*327  FOR  24 TH MARCH,  2017  REGARDING  'FINANCING  METHODS'  TABLED  BY  SHRI ANANDRAO  ADSUL  AND  SHRI  RAM  KUMAR  SHARMA,  MEMBERS  OF PARLIAMENT.

(a) : Some Public Sector Banks (PSBs) offer innovative products related to supply chain and  ecosystem finance  such  as  Vendor  Bill  Discounting,  Channel  financing,  Receivable Buyout with recourse that cater to firms in meeting their specific requirements. Prominent banks such as SBI have also entered into collaboration with e-commerce platforms such as Snapdeal to offer instant working capital loans to sellers. Banks  have  also enabled web  based  applications  for  processing retail loan applications.  Overdraft  facilities  against  fixed  deposits  are  also  offered  by  PSBs  to  their customers. (b)  &  (c): As  on  Dec  31,  2016,  Gross  Non  Performing  Assets  (GNPAs)  of  Scheduled Commercial Banks (SCBs) stood at Rs 6.93 lakh crore (9.54%) against Rs 5.66 lakh crore (7.79%) as on March 31, 2016. Sector-wise classification of GNPAs is annexed. The Government has taken sector specific measures (Infrastructure, Power, Road, Textiles, Steel etc.) where incidence of NPA is high. The Insolvency and Bankruptcy code (IBC) has been enacted and SARFAESI Act and the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans. Six new Debt Recovery Tribunals (DRTs) have been established for improving recovery. RBI has also taken a number of measures to improve the situation viz.  Corporate Debt Restructuring (CDR), Formation of Joint Lenders' Forum (JLF), Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Strategic

Debt Restructuring Scheme (SDR) and Sustainable Structuring of Stressed Assets (S4A).

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| Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                | Annexure                                                                                |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) | Rs in crore SECTORAL CLASSIFICATION OF GROSS NPAs FOR SCHEDULED COMMERCIAL BANKS (SCBs) |
|                                                                                         | Retail                                                                                  | Retail                                                                                  | Priority Sector                                                                         | Priority Sector                                                                         | Agriculture                                                                             | Agriculture                                                                             | MSME                                                                                    | MSME                                                                                    | Corporate Lending                                                                       | Corporate Lending                                                                       |
| Year                                                                                    | GNPA                                                                                    | GNPA %                                                                                  | GNPA                                                                                    | GNPA %                                                                                  | GNPA                                                                                    | GNPA %                                                                                  | GNPA                                                                                    | GNPA %                                                                                  | GNPA                                                                                    | GNPA %                                                                                  |
| Mar- 16                                                                                 | 26,974.00                                                                               | 1.93                                                                                    | 1,40,516.82                                                                             | 5.54                                                                                    | 48,845.23                                                                               | 4.69                                                                                    | 70,841.66                                                                               | 7.55                                                                                    | 4,19,585.68                                                                             | 7.97                                                                                    |
| Dec- 16                                                                                 | 30,902.27                                                                               | 1.99                                                                                    | 1,64,689.19                                                                             | 6.54                                                                                    | 57,818.22                                                                               | 6.12                                                                                    | 80,385.62                                                                               | 8.87                                                                                    | 5,24,348.80                                                                             | 9.73                                                                                    |

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