Lok Sabha Question No. 1338 (UNSTARRED), answered on 2018-02-09
Subject: Action on NPAs
Ministry: FINANCE
Asked by: ARPITA GHOSH, DIPSINH SHANKARSINH RATHOD, SHIVKUMAR CHANABASAPPA UDASI, ASHOK MAHADEORAO NETE

1338:

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

## LOK SABHA UNSTARRED QUESTION NO: 1338

TO BE ANSWERED  ON THE 9 TH  FEBRUARY,  2018/MAGHA  20, 1939 (SAKA)

## QUESTION ACTION  ON NPAs

SHRIMATI ARPITA  GHOSH: SHRI SHIVKUMAR  UDASI:

SHRI D.S.  RATHOD:

SHRI ASHOK MAHADEORAO NETE :

Will  the Minister  of FINANCE  be pleased to state:

- a) whether  the Non  Performing  Assets (NPAs)  of banks  are on the rise, if so, the details  thereof  and the total NPA amount  in the country;
- b) whether  banks  are facing difficulties  in recovering  the loans which  have been declared  as NPA  and if so, the details  thereof;
- c) whether   the  Government   has decided  to  take   strict   action   against   loan   defaulters   and  if  so, the  details thereof;
- d) the remedial  measures  taken/being  taken  by  the Government/Reserve Bank of India to control/resolve NPAs;  and
- e) the reason for bringing  up a bill  like  Financial  Resolution  and Deposit  Insurance,  where  public  money  will be at stake,  while  the NPA  issues are not  resolved  by  the Government?

## ANSWER

## To be answered by

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHIV PRATAP  SHUKLA)

- (a):  As  per  Reserve  Bank of India (RBI) data,  combined  Gross NPAs  of Scheduled  Commercial Banks have declined  marginally from 10% as on 30.6.2017 to  9.8% as on 30.9.2017.

In  addition   to  the  above  steps  for  addressing   resolution   of  NPAs,   the  proposed   Financial   Resolution   and Deposit Insurance  Bill,  2017 aims to provide  for a comprehensive  resolution  mechanism  with  the objective  of protecting   consumers   and  public   funds, thereby   contributing to  the  stability and  resilience   of  the  financial system. The  provisions  of the bill  do not modify  present  protections  to the depositors.

(b) to (e): Recovery  of loans was being  effected under  the provisions  of the Securitisation  and Reconstruction of Financial   Assets  and  Enforcement   of  Security   Interest (SARFAESI)   Act  and  through   Debts  Recovery Tribunals.  SARFAESI  Act was amended  in 2016 to make  it more effective.  Further,  six new  Debts Recovery Tribunals  have been established  to expedite  recovery.  Insolvency  and Bankruptcy Code,  2016 has been enacted to create  a unified  framework  for resolving  insolvency  and bankruptcy matters,  and to provide  for timebound resolution  of stressed assets. 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.  RBI has issued directions  to certain  banks  for referring  12 accounts,  with  fund and non-fund  based outstanding  amount  greater than Rs. 5,000 crore  and with  60% or more classified  as non-performing  as of 31.3.2016,  to initiate  insolvency process under the Insolvency  and Bankruptcy  Code,  2016. These 12 accounts  constituted  about  25% of the GNPAs of the banking  system.