Lok Sabha Question No. 4248 (UNSTARRED), answered on 2021-03-22
Subject: Banks NPAs
Ministry: FINANCE
Asked by: Gopal Chinayya Shetty

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-t4248

ANSWERED ON- 22/03/2021

## BANKS NPAs

## t4248. SHRI GOPAL CHINNAYA SHETTY

Will the Minister of FINANCE be pleased to state:

- (a) the loan-amount classified as Non-Performing Assets (NPAs) by the Public Sector Banks (PSBs) as on date;
- (6) the details of the recovery rate of NPAs in PSBs the last three years, bankwise; during
- whether the recovery of NPAs has reduced the last three years; during
- (d) if so, the reasons therefor; and
- the details of the steps taken by the Governments to ensure prompt recovery of the NPAs by the PSBs?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI ANURAG SINGH THAKUR)

- (a) to (e): As per Reserve Bank of India (RBI) data, aggregate gtoss advances of PSBs increased   from Rs. 18,19,074 crore as on 31.3.2008 to Rs: 52,15,920 crore as on 31.3.2014. As per RBL inputs, aggressive lending practices this along with wilful default/loan frauds/corruption in some cases, economic slowdown etc: were observed to be primary reasons for the spurt in the stressed assets 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 not provided for earlier under flexibility given to restructured loans, were provided fof; Further; all such schemes for testructuring stressed loans were withdrawn in the financial year (FY) 2017-18. Primarily as a result of transparent recognition of stressed assets as NPAs, a8 per RBI data on global operations, gross NPAs of PSBs rose from Rs. 2,79,016 crore as on 31.3.2015, to Rs.   8,95,601 crore as on 31.3.2018, and as a result of Government' $ strategy of recognition; resolution, recapitalisation and reforms; have since As per audited financials of PSBs, it has further declined to Rs: 5,77,137 crore aS on 31.12.2020. period during loans,

With to the details of the recovery rate of NPAs, RB has informed that it has not defined tecovery rate in the context of NPAs in the banking sector and the data for the regard same is not maintained by it: With regard to the recovery a8 per RBI PSBs have made a tecovery of Rs. 77,563 crore financial year (FY) 2017-18, Rs. 1,21,076 crore FY2018-19,and Rs: 1,08,635 crore FY2019-20. data, during during during

Government has implemented a comprehensive   strategy, consisting of recognition of NPAs transparently, resolution and recovery of value from stressed accounts, recapitalisation of PSBs, and reforms in PSBs and the wider financial ecosystem for a responsible and clean   system   Comprehensive   steps taken for recovery of NPAs, including, inter-alia, the following: have been

- 2) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest 2002 has been amended to make it more effective, with provision for three months' imprisonment in case the borrower does not provide asset details, and for the lender to possession of mortgaged property within 30 Act, days: get
- (1)   Change in credit culture has been effected, with the Insolvency and Bankruptcy Code (IBC) fundamentally changing the creditor-borrowef relationship, away control of the defaulting company from promoters /owners and debarring wilful defaulters from the resolution process As per the Insolvency and Bankruptcy Board of India data, resolution plans under IBC have been approved in 277 cases till September 2020, with Rs. 1.89 lakh crore realisable amount by financial creditors: taking
- (3) Pecuniary jurisdiction of Debt Recovery Tribunal (DRTs) was increased from Rs. 10 lakh to Rs. 20 lakh to enable the DRTs to focus on high value cases resulting in higher recovery for the banks and financial institutions. Six new DRTs have also been established to recovery. expedite
4. Over the last six financial years and the current financial yeat; Government has infused of Rs. 3.24 lakh crore in PSBs, with PSBs themselves mobilising Rs. 2.77 lakh crore from market in the form of both equity and bonds, and from monetising their non-core assets to extent of Rs. 36,226 crore, enabling PSBs to enable effective resolution of NPAs: capital along
- (5) reforms have been instituted in PSBs as part of the Public Sector Banks Reforms Agenda, including, inter alia, the following: Key
6. Monitoring has been strictly segregated from sanctioning roles in high-value loans, and specialised monitoring agencies combining financial and domain knowledge have been deployed for effective monitoring of loans above Rs 250 crore:
7. Stressed Asset Management verticals were set up in banks for focused slippage prevention, recovery arrangement and time-bound action in respect of large-value stressed assets:
8. (ii) To ensure timely and better realisation in one-time settlements (OTSs), end-to-end OTS platform have been set up: