Lok Sabha Question No. 3817 (UNSTARRED), answered on 2017-03-24
Subject: Assessment of Indian Economy
Ministry: FINANCE
Asked by: PREM SINGH CHANDUMAJRA

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

## LOK SABHA UNSTARRED QUESTION NO 3817

TO BE ANSWERED ON THE 24th MARCH, 2017/ CHAITRA 03, 1939 (SAKA)

## ASSESSMENT OF INDIAN ECONOMY

3817 , PROF. PREM SINGH CHANDUMAJRA:

Will the Minister of FINANCE be pleased to state:

- a) whether the Government is aware of  assessment made by Moody impaired loans of banks;
- c) whether the Government has expressed its concern about the assessment of Indian economy by the said rating agency during the year 2016-17; and
- b) if so , the details thereof and amount of such loans assessed in the country during the year 2016-17;
- d) if so, the details thereof?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SANTOSH KUMAR GANGWAR)

(a) to (d): AllI the Sovereign Credit agencies have their own set of assessment criteria for assigning the weights to different parameters and arriving at the final Sovereign Rating: Rating

The Gross Non-Performi 1996-97 to 2.36 percent in 2010-11. However; as a consequence of global slowdown and other factors, asset quality of the Indian banking system has come under stress in the last couple of years. As on March 2016, the Gross NPA ratio was 7.78 per cent: As on June 2016, the Gross NPAs Ratio was increased to 8.56 per cent and the ratio of restructured standard assets to gross advances was 3.39 per cent (6.34 in June 2015). Stressed assets (Gross NPA Ratio Restructured   standard assets to gross marginally from 11.31 per cent in June 2015 to 11.95 per cent in June 2016 ing

The details of Gross Advances, Gross Non-Performing Assets (GNPA) and GNPA ratio for Public Sector Banks (PSBs) as on Dec-2016 as given below:

| DATA FOR GROSS ADVANCES, GROSS NPA AND GNPA RATIO OF PUBLIC SECTOR BANKS (PSBs) AS ON 31.12.2016 (Rs. In Crore)   | DATA FOR GROSS ADVANCES, GROSS NPA AND GNPA RATIO OF PUBLIC SECTOR BANKS (PSBs) AS ON 31.12.2016 (Rs. In Crore)   | DATA FOR GROSS ADVANCES, GROSS NPA AND GNPA RATIO OF PUBLIC SECTOR BANKS (PSBs) AS ON 31.12.2016 (Rs. In Crore)   | DATA FOR GROSS ADVANCES, GROSS NPA AND GNPA RATIO OF PUBLIC SECTOR BANKS (PSBs) AS ON 31.12.2016 (Rs. In Crore)   |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   | Gross Advances                                                                                                    | Gross NPAs                                                                                                        | Gross NPA Ratio (%)                                                                                               |
| PUBLIC SECTOR BANKS (PSBs)                                                                                        | 49,61,642                                                                                                         | 6,06,911                                                                                                          | 12.23                                                                                                             |

Source: RBI, December- 2016 (Provisional Data)