Lok Sabha Question No. 1295 (UNSTARRED), answered on 2017-12-22
Subject: Corporate Loan and Agricultural Loan
Ministry: FINANCE
Asked by: MOHAMMAD SALIM, MD. BADARIDDOZA KHAN

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

## LOK SABHA

TO BE ANSWERED  ON THE 22nd DECEMBER,  2017/PAUSHA  1, 1939 (SAKA)

UNSTARRED  QUESTION  NO:  1295

## QUESTION CORPORATE  LOAN AND AGRICULTURAL LOAN

## 1295:   SHRI MOHD.  SALIM: SHRI  MD. BADARUDDOZA  KHAN:

Will  the Minister  of FINANCE  be pleased to state:

- (a) the  total   amount   of  Corporate   Loan  and  Agricultural Loan  written   off  by   the Government  during  the last three  years,  State/UT-wise;
- (c) if so, the details  thereof?
- (b) whether  the Government  is proposing  to give concession  for the Corporate  Sector and Agriculture Sector  in near  future;  and

## ANSWER

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

## (SHIV PRATAP  SHUKLA)

- (a) Available   data  on  reduction   in  non-performing   assets  (NPAs)   due  to  write-off (including  compromise)  in Agriculture and Allied  activities  and in Industry,  as reported by Public  Sector  Banks to the Reserve  Bank  of India (RBI) during  financial  years  2016-17 and 2017-18 (till  30.9.2017)  are at Annexure.  State-wise  data is not centrally  maintained.
- (b)  and  (c):   With   a  view   to  ensuring   availability of  agriculture credit,   including   loans taken  against  Kisan Credit  Card (KCC),  at a reasonable  cost or at a reduced  rate of 7% per  annum   to  farmers,   Government   of  India,   had  introduced   an  interest   subvention scheme (2%) for short-term  crop loans up to Rs. 3 lakh.  3% additional  incentive  is given for prompt  repayment  of loan reducing  the cost to 4%. While  earlier  this  subvention  was available  for a maximum  period  of one year,  in order  to discourage  distress sale of crops by  farmers,   the  benefit   of  interest   subvention   has  been  made  available   to  small and marginal  farmers  having  KCC  for a further  period  of up to six months  (post-harvest)  at the same rate as available  to crop loan  against  negotiable  warehouse  receipts  issued on the  produce   stored  in  warehouses   accredited   with   the  Warehousing   Development Regulatory   Authority. Loans  restructured   on  account   of  natural   calamities   are  also available  for the first  year  at the subvented  rate  of 7%.

National   Bank  for  Agriculture and  Rural   Development   (NABARD)   raised  market borrowing  for short-term  borrowings  at prevailing  market  rate of interest  for  Rs. 17,881 crore   and  disbursed   the  same  under refinance   for  on-lending   to  Cooperative Banks  at 4.5% rate of interest  during  2016-17.

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## Lok Sabha Unstarred  Question  No. 1295, for 22.12.2017

## Reduction in NPA- due to write-off  (including compromise)

Amounts  in crore  Rs.

| Bank Group          | Agriculture andAllied Activities   | Agriculture andAllied Activities   | Industry   | Industry              |
|---------------------|------------------------------------|------------------------------------|------------|-----------------------|
|                     | FY 2016-17                         | 1.4.2017 to 30.9.2017              | FY 2016-17 | 1.4.2017 to 30.9.2017 |
| Public Sector Banks | 7,091                              | 2,369                              | 48,435     | 36,510                |

Source:  Reserve  Bank of  India

## Annexure