Lok Sabha Question No. 617 (UNSTARRED), answered on 2018-07-20
Subject: Vehicle and Housing Loans
Ministry: FINANCE
Asked by: LAXMI NARAYAN YADAV, MANSUKHBHAI DHANJIBHAI VASAVA

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

LOK SABHA UNSTARRED  QUESTION  NO: 617 TO BE ANSWERED  ON THE 20 th  JULY,  2018/ASHADHA  29, 1940 (SAKA)

## QUESTION VEHICLE AND HOUSING  LOANS

## 617:   SHRI LAXMI  NARAYAN  YADAV: SHRI  MANSUKHBHAI  DHANJIBHAI  VASAVA:

Will  the Minister  of FINANCE  be pleased to state:

- a) whether  the Government  maintains  any  data/information with  regard  to vehicle  and housing  loans disbursed  by  the Public  Sector  Banks  (PSBs);
- c) if not,  the reasons  therefor  and the action taken by  the Government  in this regard;
- b) if so, the details  thereof  during  the last three  years  and the current  year;
- d) whether  the Government  has formulated  any  policy  to ensure  timely  repayment  of the said loans,  if so, the details  thereof  and the manner  in which  repayment  of these loans  are to be made;
- f) if  so,  the  reaction   of  the  Government   in  this  regard   and  the  corrective   steps  taken   by   the Government  in this regard?
- e) whether  the said vehicle  and housing  loans are not being  repaid  on time  and banks  are likely  to lose huge amount  of funds; and

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

- (a)  to  (c):  Reserve   Bank  of  India  (RBI)  data  on  domestic   operations   on  Housing   Loans  and Vehicle/Auto   Loans  -  Advances   Outstanding   reported   by   Public   Sector   Banks,   for  the  last  three financial  years  are at Annexure.
- (e) and (f): Reserve  Bank of India (RBI) data on gross NPA  ratios,  based on domestic  operations  on Housing  Loans and Vehicle/Auto  Loans -  Advances  Outstanding  reported  by  Public  Sector Banks, for the last three  financial  years  are at Annexure.  These show  low  gross NPA  ratios,  indicating  timely repayment  in most cases.
- (d):  With   regard   to  policy   on  loans,   RBI  has  informed   that   it  has  advised   banks   to  formulate   and implement   Loan  Policy and  Loan  Recovery   Policy   with   the  approval   of  their   respective Boards  of Directors  and to establish  Recovery  Cells  at Head  Office,  fix recovery  targets  for various  levels,  and closely   monitor   recovery   performance.   Banks  have  also  been  advised  to  put  in  place  a  robust mechanism  for early  detection  of signs of distress.  Further,  RBI has advised banks  to strengthen  the information-sharing mechanism   among   lenders   by   making   it  compulsory for  banks   to  receive/share information  on borrowers  before sanctioning  of loans.  RBI has also advised banks  to make  their  IT and MIS system  robust  so that  they  are able to generate  reliable  and quality  information with  regard  to asset quality  for effective  decision-making.

## Lok Sabha  Unstarred  Question  No. 617,  for  20.7.2018 Data on Housing Loans and Vehicle Loans of Public Sector Banks

|                     | Housing Loans   | Housing Loans   | Housing Loans   | Vehicle/ AutoLoans   | Vehicle/ AutoLoans   | Vehicle/ AutoLoans   |
|---------------------|-----------------|-----------------|-----------------|----------------------|----------------------|----------------------|
|                     | As on 31.3.2016 | As on 31.3.2017 | As on 31.3.2018 | As on 31.3.2016      | As on 31.3.2017      | As on 31.3.2018      |
| AdvancesOutstanding | 5,10,531        | 5,70,446        | 7,02,375        | 87,060               | 1,02,514             | 1,21,886             |
| Gross NPARatio(%)   | 1.31            | 1.47            | 1.72            | 2.42                 | 2.28                 | 2.47                 |

Source: RBI (domestic operations, Mar-18 provisional data)

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Amounts  in crore  Rs.