Lok Sabha Question No. 1438 (UNSTARRED), answered on 2019-07-01
Subject: Bank NPA
Ministry: FINANCE
Asked by: Ramesh Chander Kaushik

## GOVERNMENT  OF INDIA

## MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO: †1438 TO BE ANSWERED ON THE 1 st  JULY, 2019/ASHADHA 10, 1941  (SAKA)

## Bank NPA

## †1438:  SHRI RAMESH CHANDER  KAUSHIK:

- (a) the details  of the present  status of Non-Performing Assests (NPAs)  accounts  in banks,  bankwise;

Will  the Minister  of FINANCE  be pleased to state:

- (b) whether  the Reserve  Bank of  India has issued any  new  guidelines  for NPA;  and

## ANSWER

(S mt. Nirmala  Sitharaman)

## To be answered by FINANCE  MINISTER

(a):  As  per  inputs   received   from   Reserve   Bank of  India  (RBI),  the  bank-wise   NPA   details   as  on 31.3.2019   (provisional   data  for  the  financial   year   ending March 2019)  with   respect   to  global operations  of Scheduled  Commercial Banks (SCBs) are at Annex.

(b)  and  (c):  On  12.2.2018,   RBI  issued  a  circular   on  Resolution   of  Stressed  Assets  Revised Framework.   Supreme   Court, vide its order   dated  2.4.2019,   held  the  said  circular   as non-est, necessitating  issue of a revised  circular  for expeditious  and effective  resolution  of stressed assets. Against   this   background,   RBI  has  issued  on  7.6.2019,   'Prudential   Framework for  Resolution   of Stressed  Assets'  for  early   resolution   of  stressed  assets  in  a  transparent   and  time-bound   manner, giving  complete  discretion  to lenders  with  regard  to design and implementation of resolution  plans, while  providing  for disincentives  in the form  of additional  provisioning  for delay  in implementation of resolution  plan  or initiation of insolvency  proceedings,  and making  mandatory  the signing  of an inter-creditor  agreement,   providing for majority  decision-making  by  all  lenders.

As  per  RBI  data  on  global   operations,   aggregate   gross  advances  of  SCBs  increased   from Rs. 25,03,431  crore  as on 31.3.2008  to Rs. 68,75,748  crore  as on 31.3.2014.  As per RBI inputs,  the primary  reasons for spurt  in stressed assets have been observed  to be, inter-alia, aggressive  lending practices,   wilful   default/loan   frauds/corruption in  some  cases,  and  economic   slowdown.   Asset Quality   Review   (AQR)   initiated   in  2015  for  clean   and  fully   provisioned   bank   balance-sheets, revealed  high  incidence  of NPAs.  As a result of AQR  and subsequent  transparent  recognition  by banks,   stressed  accounts   were   reclassified   as  NPAs   and  expected   losses  on  stressed  loans,   not provided  for earlier  under  flexibility given  to restructured  loans,  were  provided  for. Further,  all such schemes  for  restructuring stressed  loans  were   withdrawn. Primarily as  a  result of  transparent recognition  of stressed assets as NPAs,  gross NPAs  of SCBs, as per RBI data on global  operations, rose from Rs. 3,23,464 crore  as on 31.3.2015,  to Rs. 10,36,187  crore  as on 31.3.2018,  and as a result of Government's  4R's strategy  of recognition,  resolution,  recapitalisation and reforms,  have since declined  by  Rs. 86,908 crore  to Rs. 9,49,279 crore  as on 31.3.2019  (provisional  data).

- (c) if so, the reasons  therefor?

## Lok Sabha Unstarred  Parliament  Question  No. 1438,  for  1.7.2019 GNPA ratios of Scheduled Commercial  Banks, as on 31.3.2019

| Bank                                          | Gross NPAto Gross Advances Ratio (%)   |
|-----------------------------------------------|----------------------------------------|
| AbuDhabi Commercial Bank PJSC                 | 3.47%                                  |
| Allahabad Bank                                | 17.55%                                 |
| American Express Banking Corporation          | 2.24%                                  |
| AndhraBank AUSmall                            | 16.21%                                 |
| FinanceBank Limited                           | 2.04%                                  |
| Australiaand NewZealand Banking Group Limited | 4.25%                                  |
| AxisBank Limited                              | 5.31%                                  |
| BandhanBank Limited                           | 2.04%                                  |
| Bank of Bahrain& KuwaitB.S.C.                 | 4.62%                                  |
| Bank of Baroda                                | 9.61%                                  |
| Bank of Ceylon                                | 0.13%                                  |
| Bank ofIndia                                  | 15.84%                                 |
| Bank of Maharashtra                           | 16.40%                                 |
| Bank ofNova Scotia                            | 2.83%                                  |
| BarclaysBank PLC                              | 1.89%                                  |
| BNPParibas                                    | 0.05%                                  |
| CanaraBank                                    | 8.83%                                  |
| CapitalSmall                                  | 1.30%                                  |

| FinanceBank Limited                               |        |
|---------------------------------------------------|--------|
| Catholic SyrianBank Limited                       | 4.87%  |
| CentralBank of India                              | 19.29% |
| CitibankN.A.                                      | 1.37%  |
| CityUnion Bank Limited                            | 2.95%  |
| Cooperatieve Rabobank U.A.                        | 3.06%  |
| Corporation Bank                                  | 15.35% |
| Credit Agricole Corporateand Investment Bank      | 0.06%  |
| CreditSuisse AG                                   | 18.18% |
| CTBC Bank Co.Limited                              | 0.42%  |
| DBS Bank Limited                                  | 3.13%  |
| DCBBank Limited                                   | 1.84%  |
| DenaBank                                          | 21.07% |
| Deutsche Bank AG                                  | 2.91%  |
| DohaBank QSC                                      | 0.92%  |
| EquitasSmall FinanceBank Limited                  | 2.53%  |
| FederalBank Limited                               | 2.92%  |
| FirstrandBank Limited                             | 6.79%  |
| HDFCBank Limited                                  | 1.35%  |
| Hongkong and Shanghai Banking Corporation Limited | 0.89%  |
| ICICIBank Limited                                 | 7.38%  |
| IDBI Bank                                         | 27.47% |

| Limited                               |        |
|---------------------------------------|--------|
| IDFCBank Limited                      | 2.43%  |
| IndianBank                            | 7.11%  |
| Indian OverseasBank                   | 21.97% |
| IndusInd Bank Limited                 | 2.10%  |
| Industrialand Commercial Bank ofChina | 3.81%  |
| Jammuand KashmirBank Limited          | 8.97%  |
| Karnataka Bank Limited                | 4.41%  |
| KarurVysya Bank Limited               | 8.79%  |
| KEB Hana Bank                         | 10.97% |
| Kotak Mahindra Bank Limited           | 2.14%  |
| LakshmiVilas Bank Limited             | 15.30% |
| Mizuho Bank Limited                   | 0.06%  |
| NainitalBank Limited                  | 13.39% |
| OrientalBank of Commerce              | 12.66% |
| PTBank Maybank Indonesia TBK          | 13.85% |
| Punjaband SindBank                    | 11.83% |
| Punjab NationalBank                   | 15.50% |
| RBLBank Limited                       | 1.38%  |
| Sberbank                              | 55.03% |
| SbmBank (Mauritius) Limited           | 13.22% |
| ShinhanBank                           | 1.46%  |
| Societe Generale                      | 9.32%  |
| SonaliBank                            | 15.53% |
| SouthIndian                           | 4.92%  |

| Bank Limited                            |        |
|-----------------------------------------|--------|
| Standard Chartered Bank                 | 9.09%  |
| StateBank of India                      | 7.53%  |
| Suryodaya SmallFinance Bank Limited     | 2.94%  |
| Syndicate Bank                          | 11.37% |
| Tamilnad Mercantile Bank Limited        | 4.32%  |
| TheBank of Tokyo- Mitsubishi UFJLimited | 0.58%  |
| The Dhanalakshmi Bank Limited           | 7.47%  |
| UCOBank                                 | 25.00% |
| UjjivanSmall FinanceBank Limited        | 0.92%  |
| UnionBankof India                       | 14.98% |
| UnitedBank of India                     | 16.48% |
| United OverseasBank Limited             | 23.96% |
| UtkarshSmall FinanceBank Limited        | 1.38%  |
| VijayaBank                              | 6.58%  |
| WooriBank                               | 0.70%  |
| Yes Bank Limited                        | 3.22%  |

Source: RBI, Global Operations