Lok Sabha Question No. 741 (UNSTARRED), answered on 2018-12-14
Subject: Gross Advances by Banks
Ministry: FINANCE
Asked by: PRATHAP SIMHA, SHOBHA KARANDLAJE

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

LOK SABHA UNSTARRED  QUESTION  NO: 741 TO BE ANSWERED  ON THE 14 th  DECEMBER,  2018/AGRAHAYANA 23, 1940 (SAKA)

## QUESTION GROSS  ADVANCES BY  BANKS

## 741:  SHRI PRATHAP  SIMHA: KUMARI  SHOBHA  KARANDLAJE:

Will  the Minister  of FINANCE  be pleased to state:

- a) whether   the  gross  advances  by   Public   Sector   Banks   (PSBs)  increased   significantly between  2008 to 2014;
- c) whether   between   April   2014 and  April   2018,  the  country's 21  State-owned   banks ended up writing  off Rs. 3,16,500 crore  of loans even as they   recovered  Rs. 44,900 crore   written   off  on  a  cumulative   basis  or  less  than   one-seventh   the  write-off amount;  and
- b) if  so,  the  details   of  Non-Performing Assets  (NPAs)   of  various   PSBs  as  on  date, bank-wise;
- d) if so, the details  thereof,  bank-wise  and the reasons  therefor?

## ANSWER

(a)  and  (b):  As  per  Reserve   Bank of  India  (RBI)  data  on  domestic   operations,   the aggregate  gross advances of Public  Sector  Banks (PSBs) increased  from Rs. 16,98,109 crore   as  on  31.3.2008   to  Rs.  45,90,570   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 non-performing  assets (NPAs).  As a result  of AQR  and subsequent  transparent  recognition  by  PSBs, 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. During  the financial year 2017-18, all such schemes  for restructuring stressed loans were withdrawn.  Primarily as a result  of transparent  recognition  of stressed assets as NPAs, gross NPAs  (GNPAs)  of PSBs have increased.  Bank-wise  details  of GNPAs  of PSBs,

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

as  per  RBI  data  on  domestic   operations,   as  on  30.9.2018   (provisional   data),   are  at Annexure-I.

(c)  and  (d): As  per  RBI  guidelines   and  policy   approved   by   bank   Boards,   nonperforming  loans,  including, inter-alia ,  those  in  respect   of  which   full   provisioning has been made on completion  of four years,  are removed  from the balance-sheet  of the bank  concerned   by   way   of  write-off.   Banks   write-off   NPAs   as  part   of  their   regular exercise  to clean  up their  balance-sheet,  tax benefit  and capital  optimisation. Borrowers of such written-off  loans continue  to be liable  for repayment. Recovery  of dues takes place on ongoing basis under  legal mechanisms, which include, inter-alia, the Securitisation   and  Reconstruction of  Financial   Assets  and  Enforcement   of  Security Interest   Act   (SARFAESI   Act),   and  Debts  Recovery   Tribunals.   Therefore,   write-off does not benefit  the borrower.  As per RBI data on global  operations  for PSBs, during the financial  years  2014-15 to 2017-18, the aggregate  amount  of reduction  in NPAs  due to write-offs  (including  compromise)  was Rs. 3,16,515  crore.  Recovery  under relevant legal   processes  from written-off   accounts   may   extend   beyond   the  financial   year   in which  the account  is written  off. As per RBI data on global  operations  for PSBs, during the financial   years 2014-15 to 2017-18, PSBs recovered  Rs. 2,33,339 crore,  of which Rs. 32,693 crore  was from written-off  accounts.  Bank-wise,  year-wise  details  of written off amount  and recoveries  are at Annexure-II  and Annexure-III  respectively.

Annexure-I

***

## Lok Sabha Unstarred  Question  No. 741,  for  14.12.2018 Gross Non-Performing  Assets of Public Sector Banks, as on 30.9.2018

|   S. N. | Bank          | GrossNPAs   |
|---------|---------------|-------------|
|       1 | AllahabadBank | 27,065      |
|       2 | Andhra Bank   | 27,623      |
|       3 | Bank ofBaroda | 46,454      |
|       4 | Bank ofIndia  | 50,338      |

Amounts  in crore  Rs.

|   5 | Bank ofMaharashtra      | 16,873   |
|-----|-------------------------|----------|
|   6 | CanaraBank              | 41,907   |
|   7 | CentralBank ofIndia     | 37,411   |
|   8 | Corporation Bank        | 22,400   |
|   9 | DenaBank                | 16,140   |
|  10 | IDBI Bank Limited       | 50,690   |
|  11 | IndianBank              | 12,015   |
|  12 | IndianOverseasBank      | 35,607   |
|  13 | OrientalBank ofCommerce | 25,673   |
|  14 | Punjaband SindBank      | 7,202    |
|  15 | PunjabNationalBank      | 80,993   |
|  16 | SyndicateBank           | 24,922   |
|  17 | UCOBank                 | 28,822   |
|  18 | UnionBank ofIndia       | 48,575   |
|  19 | UnitedBank ofIndia      | 15,163   |
|  20 | VijayaBank              | 7,557    |
|  21 | StateBank ofIndia       | 2,02,179 |

Source: RBI (domestic operations, September 18 provisional data)

***

Lok Sabha Unstarred  Parliament  Question  No. 741,  for  14.12.2018 Reduction in NPAs of Public Sector Banks - due to write-offs  (including compromise)

|   SN | Bank                          | FY 2014-15   | FY 2015-16   | FY 2016-17   | FY 2017-18     |
|------|-------------------------------|--------------|--------------|--------------|----------------|
|    1 | AllahabadBank                 | 2,109        | 2,126        | 2,442        | 3,635          |
|    2 | Andhra Bank                   | 1,124        | 814          | 1,623        | 1,666          |
|    3 | Bank ofBaroda                 | 1,563        | 1,554        | 4,348        | 4,948          |
|    4 | Bank ofIndia                  | 866          | 2,374        | 7,346        | 8,976          |
|    5 | Bank ofMaharashtra            | 264          | 903          | 1,374        | 2,460          |
|    6 | CanaraBank                    | 1,472        | 3,387        | 5,545        | 8,310          |
|    7 | CentralBank ofIndia           | 1,386        | 1,334        | 2,396        | 2,924          |
|    8 | Corporation Bank              | 779          | 2,495        | 3,574        | 8,228          |
|    9 | DenaBank                      | 515          | 760          | 833          | 661            |
|   10 | IDBI Bank Limited             | 1,609        | 5,459        | 2,868        | 12,515         |
|   11 | IndianBank                    | 550          | 926          | 437          | 1,606          |
|   12 | IndianOverseasBank            | 2,087        | 2,067        | 3,066        | 6,908          |
|   13 | OrientalBank ofCommerce       | 925          | 1,668        | 2,308        | 6,357          |
|   14 | Punjaband SindBank            | 263          | 335          | 491          | 460            |
|   15 | PunjabNationalBank            | 5,996        | 6,485        | 9,205        | 7,407          |
|   16 | SyndicateBank                 | 1,055        | 1,430        | 1,271        | 2,400          |
|   17 | UCOBank                       | 0            | 1,573        | 1,937        | 2,735          |
|   18 | UnionBank ofIndia             | 931          | 792          | 1,264        | 3,477          |
|   19 | UnitedBank ofIndia            | 761          | 649          | 714          | 1,867          |
|   20 | VijayaBank                    | 791          | 510          | 1,068        | 1,539          |
|   21 | StateBank ofIndia (SBI)       | 21,303       | 15,955       | 20,339       | 39,151         |
|   22 | StateBank ofBikanerand Jaipur | 363          | 643          | 1,560        | Merged withSBI |
|   23 | StateBank ofHyderabad         | 355          | 1,204        | 1,430        |                |
|   24 | StateBank ofMysore            | 740          | 588          | 161          |                |
|   25 | StateBank ofPatiala           | 755          | 1,156        | 3,528        |                |
|   26 | StateBank ofTravancore        | 456          | 398          | 556          |                |

Source: RBI (global operations)

Amounts  in crore  Rs.

## Lok Sabha Unstarred  Parliament  Question  No. 741,  for  14.12.2018 Recoveries of Public Sector Banks

| S. N.                 | Bank            | FY 2014-15   | FY 2015-16      | FY 2015-16       | FY 2016-17      | FY 2016-17       | FY 2017-18      | *Write-offs are done after full provisioning,and as per RBI's guidelinesand policy approved by bank Boards, non-performing loans, including, inter-alia , those in respect of which full provisioninghas been made on completion of four years,are removedfromthe balance-sheet of the bank concernedby wayof write- off. Further,the process of recovery of dues from the borrower in such loan accounts continues and, therefore, the write-off does not benefit the borrower. Recovery under relevant legal processes from written-off accounts may extend beyond the financial year in which the accountis writtenoff.   |
|-----------------------|-----------------|--------------|-----------------|------------------|-----------------|------------------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.                    | Actual recovery | Recovery     | Actual recovery | Recovery fromWA* | Actual recovery | Recovery fromWA* | Actual recovery | Recovery fromWA*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2. AllahabadBank      | 827             | fromWA* 257  | 2,465           | 0                | 1,612           | 0                | 2,086           | 0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3. Andhra Bank        | 1,156           | 76           | 729             | 0                | 1,204           | 0                | 1,598           | 128                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4. Bank ofBaroda      | 1,493           | 0            | 1,481           | 221              | 4,088           | 327              | 1,416           | 621                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 5. Bank ofIndia       | 2,985           | 363 98       | 3,555           | 243              | 4,640           | 255              | 13,940          | 408                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 6. Bank ofMaharashtra | 430             |              | 645             | 68               | 810             | 38               | 1,765           | 138                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

## Annexure-III

Amounts  in crore  Rs.

| 7. CentralBank         | CanaraBank                              | 1,896     | 1,693   | 1,279   | 313    | 1,278   | 489              | 2,241            | 236              |
|------------------------|-----------------------------------------|-----------|---------|---------|--------|---------|------------------|------------------|------------------|
| 8. 9.                  | ofIndia 3,430                           | 0         | 3,087   | 111     | 2,600  | 121     | 3,077            | 410              |                  |
| Corporation Bank       | 318                                     | 99        | 477     | 106     | 491    | 136     | 697              | 318              |                  |
| 10. DenaBank           | 595 1,159                               | 34        | 728     | 66      | 1,120  |         | 115              | 931              | 142              |
| 11.                    | IDBI Bank Limited                       | 54        | 875     | 140     | 1,413  | 159     |                  | 6,840            | 219              |
| 12. IndianBank         |                                         | 562 0     | 526     | 353     | 739    |         | 150              | 575              | 249              |
| 13.                    | IndianOverseasBank                      | 2,602 0   | 1,806   | 7       | 2,117  |         | 1                | 4,505            | 3                |
| 14.                    | OrientalBankof Comm. Punjaband SindBank | 1,010 431 | 1,149   | 234     | 1,348  |         | 291              | 2,235            | 264              |
| 15.                    | 190                                     | 42        | 217     | 34      |        | 190     | 26               | 418              | 49               |
| 16. PunjabNationalBank | 4,220                                   | 1,017     | 6,009   | 2,298   | 10,677 |         | 2,133            | 4,443            | 981              |
| 17.                    | SyndicateBank                           | 1,087 465 | 1,260   | 387     | 1,500  |         | 376              | 2,207            | 488              |
| 18. UCOBank UnionBank  |                                         | 0 0       | 1,369   | 0       | 2,039  |         | 0                | 1,680            | 182              |
| 19.                    | ofIndia                                 | 1,130     | 317 844 | 186     | 1,388  |         | 19               | 1,835            | 28               |
| 20. UnitedBank         | ofIndia 1,237 646                       | 61        | 1,095   | 111     | 1,026  |         | 127              | 942              | 107              |
| 21. VijayaBank         |                                         | 137       | 288     | 127     |        | 575     | 153              | 828              | 154              |
| 22. StateBank          | ofIndia (SBI) 9,235                     | 41        | 4,392   | 2,859   | 7,337  |         | 3,477            | 9,847            | 5,333            |
| 23. StateBank          | ofBikanerand Jaipur 575                 | 92        | 756     | 28      | 554    |         | 79 MergedwithSBI | 79 MergedwithSBI | 79 MergedwithSBI |
| 24. StateBank          | ofHyderabad 1,981                       | 105       | 2,503   | 88      | 1,234  |         | 59               | 59               | 59               |
| 25. StateBank          | ofMysore 1,014 1,411                    | 0         | 490     | 0       | 507    |         | 0                | 0                | 0                |
| 26.                    | StateBank ofPatiala                     | 78        | 1,405   | 119     | 1,636  |         | 150              | 150              | 150              |
| 27.                    | StateBank ofTravancore                  | 1,197 0   | 1,474   | 0       | 1,126  | 0       |                  |                  |                  |

Source: RBI (global operations)  * Written-off  Accounts  (WA)