Lok Sabha Question No. 2485 (UNSTARRED), answered on 2018-03-09
Subject: Recovery of Defaulted Educational Loans
Ministry: FINANCE
Asked by: C. N. JAYADEVAN, JOSE K. MANI

## DEPARTMENT OF FINANCIAL SERVICES

## GOVERNMENT OF INDIA MINISTRY OF FINANCE LOK SABHA

## UNSTARRED QUESTION NO. 2485

TO BE ANSWERED ON THE 9 th  MARCH, 2018, PHALGUNA 18, 1939 (SAKA)

Recovery of Defaulted Educational Loans

## 2485. SHRI C.N.JAYADEVAN:

## SHRI JOSE K. MANI:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  a  number  of  Public  Sector  Banks  (PSBs)  including  the  State  Bank  of India in the country have  sold their 'bad' education loans to private asset reconstruction companies and engaged recovery agents in this regard;
- (b)  if  so,  the  details  of  the  education  loan  NPAs  and  the  student  loan  sold  to  the private asset reconstruction companies, bank-wise;
- (c)  whether  the  Government  has  taken  note  that  the  private  companies  are  using coercive  means  to  collect the loan  amount  and  if  so,  the  response  of  the Government thereon; and
- (d) whether the Government plans to provide any respite in such cases and if so, the details along with the policy of the Government in this regard?

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

- (a)  &  (b): Amongst  Public  Sector  Banks  (PSBs),  Bank  of  India,  Indian  Bank  and State Bank of India have sold their NPAs (Non-Performing Assets) education loans to  private  Asset  Reconstruction  Companies  (ARCs)  as  per  extant  RBI  guidelines. Bank-wise details of education loan NPAs and the student loan sold to the private asset reconstruction companies is at Annexure.
- (c): Banking  Ombudsmen  situated  across  India,  receive  complaints  on  various banking  related  issues.  Complaints  including  any  harassment  of  borrowers  by  the ARCs  engaged  by  the  banks,  are  resolved  as  per  the  provisions  of  the  Banking Ombudsman Scheme.
- (d): Government has advised banks to adopt non-coercive differentiated strategy in so far as recovery of education loan is concerned.

*****

Annexure to reply of Lok Sabha Unstarred Question No. 2485 for answer on 09th March, 2018 regarding Recovery of Defaulted Educational Loans.

| Bank-wise education loan NPAs and the student loan sold to the private asset reconstruction   | Bank-wise education loan NPAs and the student loan sold to the private asset reconstruction   | Bank-wise education loan NPAs and the student loan sold to the private asset reconstruction   | Bank-wise education loan NPAs and the student loan sold to the private asset reconstruction   | Bank-wise education loan NPAs and the student loan sold to the private asset reconstruction   | Bank-wise education loan NPAs and the student loan sold to the private asset reconstruction   |
|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| S.N.                                                                                          | Name of the Bank                                                                              | companies Education Loan NPA as on 31.12.2017                                                 | companies Education Loan NPA as on 31.12.2017                                                 | Students Loan Sold to Private Asset Reconstruction Companies                                  | Students Loan Sold to Private Asset Reconstruction Companies                                  |
|                                                                                               |                                                                                               | No. of Accounts                                                                               | Amount in Crore                                                                               | No. of Accounts                                                                               | Amount in Crore                                                                               |
| 1                                                                                             | Allahabad Bank                                                                                | 3088                                                                                          | 47.14                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 2                                                                                             | Andhra Bank                                                                                   | 4352                                                                                          | 65.14                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 3                                                                                             | Bank of Baroda                                                                                | 18094                                                                                         | 338.43                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 4                                                                                             | Bank of India                                                                                 | 16775                                                                                         | 302.09                                                                                        | 4239                                                                                          | 38.66                                                                                         |
| 5                                                                                             | Bank of Maharashtra                                                                           | 4824                                                                                          | 90.42                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 6                                                                                             | Canara Bank                                                                                   | 21574                                                                                         | 293.19                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 7                                                                                             | Central Bank of India                                                                         | 22066                                                                                         | 436.60                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 8                                                                                             | Corporation Bank                                                                              | 8760                                                                                          | 180.32                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 9                                                                                             | Dena Bank                                                                                     | 3609                                                                                          | 54.34                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 10                                                                                            | IDBI Bank                                                                                     | 1764                                                                                          | 42.55                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 11                                                                                            | Indian Bank                                                                                   | 37700                                                                                         | 695.34                                                                                        | 12504                                                                                         | 76.49                                                                                         |
| 12                                                                                            | Indian Overseas Bank                                                                          | 37273                                                                                         | 492.42                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 13                                                                                            | Oriental Bank of Commerce                                                                     | 6773                                                                                          | 127.66                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 14                                                                                            | Punjab& Sind Bank                                                                             | 860                                                                                           | 21.37                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 15                                                                                            | Punjab National Bank                                                                          | 25143                                                                                         | 409.16                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 16                                                                                            | State Bank of India                                                                           | 92004                                                                                         | 1565.10                                                                                       | 46373                                                                                         | 915.28                                                                                        |
| 17                                                                                            | Syndicate Bank                                                                                | 22632                                                                                         | 445.00                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 18                                                                                            | UCO Bank                                                                                      | 16423                                                                                         | 367.14                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 19                                                                                            | Union Bank of India                                                                           | 15485                                                                                         | 266.88                                                                                        | Nil                                                                                           | Nil                                                                                           |
| 20                                                                                            | United Bank of India                                                                          | 1998                                                                                          | 49.77                                                                                         | Nil                                                                                           | Nil                                                                                           |
| 21                                                                                            | Vijaya Bank                                                                                   | 5202                                                                                          | 74.86                                                                                         | Nil                                                                                           | Nil                                                                                           |
|                                                                                               | Total                                                                                         | 366399                                                                                        | 6364.93                                                                                       | 63116                                                                                         | 1030.43                                                                                       |

Source: Indian Banks' Association & PSBs