Lok Sabha Question No. 540 (UNSTARRED), answered on 2018-07-20
Subject: Loan Defaulters
Ministry: FINANCE
Asked by: RAHUL KASWAN

## GOVERNMENT  OF INDIA

## MINISTRY OF  FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED  QUESTION  NO: 540

TO BE ANSWERED  ON THE 20 th  JULY,  2018/ASHADHA  29, 1940 (SAKA)

## QUESTION LOAN DEFAULTERS

## 540:  SHRI RAHUL  KASWAN:

Will  the Minister  of FINANCE  be pleased to state:

- a) the total  quantum  of loan  availed  by  top ten debtors  in the country;
- c) whether  any  survey  has been conducted  in this  regard and  if so, the details  thereof;
- b) whether  the number  of debt defaulters  reported  a sharp rise in the country  during the last three  years,  if so, the details  thereof;
- d) whether  around  40 per cent of the total  debtors  are willful  defaulter,  if so, the details thereof;  and
- e) the  action   plan   prepared   or  action   taken   by   the  Government   to  recover   the  loan amount  from top  100 debtors  in the country?

## ANSWER To be answered by THE MINISTER OF  STATE  IN THE  MINISTRY OF  FINANCE (SHRI SHIV PRATAP  SHUKLA)

(a) to (c): As per data reported  by  Scheduled  Commercial Banks (SCBs) to Reserve  Bank of India (RBI), as on 31.3.2018,  the total  funded amount  outstanding  for loan  availed  by the  top  ten  borrowers   in  the  country   with   exposure   of  Rs.  5  crore   and  above  was Rs. 3,46,718 crore.

As per RBI data, the total  number  of debt defaulters  with  exposure of Rs. 5 crore  and above for  SCBs  during   the  financial   years 2015-16,  2016-17  and  2017-18  were   7,362, 7,557 and 7,907 respectively.

(d): As per RBI data on global  operations,  as on 31.3.2018,  gross NPAs  of Public  Sector Banks (PSBs) was Rs. 8,95,601  crore.  As per data reported  by  PSBs, as on 31.3.2018,  the total  number  of wilful  defaulters  was 9,331, amounting  to Rs. 1,22,018 crore,  which  is 13.62% of gross Non-Performing  Assets (GNPA).  The bank-wise  amount  of GNPA  for the  last  3  financial   years and  details   of  wilful   defaulter   as  on  31.3.2018   of  are  at Annexure.

(e): To reduce/contain  NPAs  of banks,  the Insolvency  and Bankruptcy Code,  2016 has been  enacted  for  time-bound   resolution   of  stressed  assets.  Further,   the  Banking Regulation Act, 1949  has been amended  to provide for authorisation by the Government  to RBI, for issuing  directions  to banks  to initiate  the insolvency  resolution process  under the  Code.   Under   the  provisions   of  this  amending   legislation,   RBI  has issued directions  to certain  banks  for referring  12 accounts,  with  outstanding  amounts greater  than  Rs. 5,000 crore  and with  60% or more  classified  as non-performing  as of 31.3.2016, to initiate  insolvency  resolution  process under the Code.  In accordance  with these directions,   banks   have  filed  applications   in  respect   of  these  accounts   before  the National  Company  Law Tribunal . Further,  keeping  in view  the enactment  of the Code, RBI has issued a revised  framework  for resolution  of stressed assets, which  provides  for time-bound  resolution   of  high-value   stressed  accounts.   The  SARFAESI   Act   has  been amended to make it more effective.   Further,   six  new   Debts  Recovery   Tribunals  have been  established   to  expedite   recovery.   In  addition,   under   the  PSB  Reforms   Agenda, PSBs  have  committed, inter-alia, to  create   Stressed  Asset  Management   verticals   for stringent  recovery  and ensure  clean and effective  post-sanction  follow-up  for large  credit exposures  through  specialised  monitoring agencies.

To reduce incidence  of default  on account  of and effect recovery  from wilful  defaulters, as per RBI's instructions, wilful  defaulters  are not sanctioned  any  additional  facilities  by banks or financial  institutions, their  unit  is debarred  from floating  new  ventures  for five years,   and  lenders   may   initiate   criminal   proceedings   against   them,   wherever   necessary. Securities  and Exchange  Board of India Regulations  have been amended  to debar wilful defaulters  and companies  with  wilful  defaulters  as promoters/directors from accessing capital  markets  to raise funds. Further,  the Insolvency  and Bankruptcy Code  has been amended  to  debar  wilful   defaulters   from  participating in  the  insolvency   resolution process.

## Lok Sabha  Unstarred  question no: 540, to be answered on 20.7.2018

## GNPAs and Number of wilful  defaulters

Amounts in crore

| Bank                    | GNPAs           | GNPAs           | GNPAs           | Wilfuldefaulters as on 31.3.2018   | Wilfuldefaulters as on 31.3.2018   |
|-------------------------|-----------------|-----------------|-----------------|------------------------------------|------------------------------------|
|                         | As on 31.3.2016 | As on 31.3.2017 | As on 31.3.2018 | No.                                | Amount                             |
| AllahabadBank           | 15,385          | 20,688          | 26,563          | 250                                | 3,965                              |
| Andhra Bank             | 11,444          | 17,670          | 28,124          | 394                                | 3,957                              |
| Bank ofBaroda           | 40,521          | 42,719          | 56,480          | 303                                | 6,253                              |
| Bank ofIndia            | 49,879          | 52,045          | 62,328          | 422                                | 7,463                              |
| Bank ofMaharashtra      | 10,386          | 17,189          | 18,433          | 212                                | 1,518                              |
| CanaraBank              | 31,638          | 34,202          | 47,468          | 491                                | 4,759                              |
| CentralBank ofIndia     | 22,721          | 27,251          | 38,131          | 787                                | 6,197                              |
| Corporation Bank        | 14,544          | 17,045          | 22,213          | 122                                | 2,453                              |
| DenaBank                | 8,560           | 12,619          | 16,361          | 228                                | 1,877                              |
| IDBI Bank Limited       | 24,875          | 44,753          | 55,588          | 116                                | 4,828                              |
| IndianBank              | 8,827           | 9,865           | 11,990          | 67                                 | 1,373                              |
| IndianOverseasBank      | 30,049          | 35,098          | 38,180          | 527                                | 4,485                              |
| OrientalBank ofCommerce | 14,702          | 22,859          | 26,134          | 424                                | 4,215                              |
| Punjab&SindBank         | 4,229           | 6,298           | 7,802           | 27                                 | 283                                |
| PunjabNationalBank      | 55,818          | 55,370          | 86,620          | 1,090                              | 15,190                             |
| SyndicateBank           | 13,832          | 17,609          | 25,759          | 203                                | 1,162                              |
| StateBank ofIndia       | 98,185          | 1,12,343        | 2,23,427        | 1,680                              | 34,436                             |
| UCOBank                 | 20,908          | 22,541          | 30,550          | 656                                | 5,722                              |
| UnionBank ofIndia       | 24,171          | 33,712          | 49,370          | 803                                | 5,103                              |
| UnitedBank ofIndia      | 9,471           | 10,952          | 16,552          | 387                                | 1,737                              |
| VijayaBank              | 6,027           | 6,382           | 7,526           | 142                                | 5,041                              |
| Total                   | 5,39,968        | 6,84,732        | 8,95,601        | 9,331                              | 1,22,018                           |

Sources: (1) RBI - for GNPAs

(2) Banks - for wilful defaulters

Rs.