Lok Sabha Question No. 1663 (UNSTARRED), answered on 2018-07-27
Subject: Monitoring of NPA Account
Ministry: FINANCE
Asked by: SANTOSH KUMAR, CHHOTELAL

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

## LOK SABHA UNSTARRED  QUESTION  NO: 1663 TO BE ANSWERED  ON THE 27 th  JULY,  2018/SHRAVANA 05, 1940 (SAKA)

## QUESTION MONITORING  OF NPA ACCOUNT

## 1663:    SHRI  SANTOSH  KUMAR: SHRI CHHOTE LAL:

Will  the Minister  of FINANCE  be pleased to state:

- (a) the  existing   mechanism   to  review   the  performance   of  Public   Sector   Banks   (PSBs) particularly with  regard  to Non-Performing  Assets (NPAs)  along  with  the details  of performance  of each Bank during  the last four years;
- (b) whether   the  Government   feels  that   existing   mechanism   was  inadequate   and  if  so, whether  the Government  is considering  fresh initiatives  to improve  the performance of all  PSBs and regain  investors  confidence;
- (c) whether the Government/RBI monitors NPA  account status in PSBs on monthly/weekly basis,  if  so,  the  details   of  nodal   agency and  officers,   Bank,   State /UT-wise  including  Bihar;  if not,  the reasons  therefor;  and
- (d) the  detailed list   of  the  top  twenty   NPA   accounts   along   with   wilful   defaulters   list, Bank,  State/UT-wise  including  Bihar?

## ANSWER

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

(a)  and  (b):  Financial   performance   of  banks   is  reflected   in  their   annual   financial statements.  As per existing  mechanism,  under  various  applicable  laws,  all banks  including Public  Sector  Banks (PSBs) are required  to have their  annual  financial  statements  (which include   details   of  NPAs)   approved   by   their   Board  of  Directors,   disclose   the  same  to stock exchanges,  furnish  copy  thereof  to the Reserve  Bank of India (RBI), and present these at the annual  general  meeting  of their  shareholders  for approval  and adoption  after discussion.   As  part   of  this   mechanism,   the  bank's   Board  and  shareholders   discuss  and review  the bank's  performance  and, in addition,  markets  and the regulator  also take  note of the performance.  This  mechanism  is in line  with  practice  in other  countries  as well. The annual  financial  statements  of all PSBs are available  on the website  of Bombay  Stock Exchange  (https://www.bseindia.com/), besides  on  the  websites   of  respective banks. Bank-wise  details  of the gross NPA  ratios  of PSBs at the end of each of the last four financial  years,  as per RBI data,  are at Annexure.

Government  has adopted a comprehensive  approach  for enabling  PSBs to improve  their performance.   NPAs   of  banks   have  been  recognised   transparently,  banks   have  made up-front  provisioning  for the same, recapitalisation has been done to strengthen  banks,  a PSB Reforms  Agenda  is under implementation for systemic  improvements  in banks,  and recovery  ecosystem  has been made clean and more  effective through  the Insolvency  and Bankruptcy  Code  and amendments  to recovery  laws.

(d): With  regard  to the list  of the top twenty  NPA  accounts  and wilful  defaulter  list,  RBI has informed  that  under  the provisions  of section  45E of the Reserve  Bank of India Act, 1934,  RBI  is  prohibited   from   disclosing   credit   information. Section   45E  provides   that credit   information submitted   by   a  bank   shall   be  treated   as  confidential   and  not  be published  or otherwise  disclosed.

Annexure

Amounts  in crore  Rupees

(c):  RBI  has  apprised   that   its  circular   stipulates   that   lenders   shall   report   to  the  Central Repository  of Information  on Large Credits  (which  is maintained  by  RBI), all borrower entities  in default  with  aggregate exposure of Rs. 5 crore  and above,  on a weekly  basis. RBI's Department  of Banking  Supervision  is the nodal  department  for the same, across banks and States / Union  territories, including  Bihar.

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## Lok Sabha Unstarred  Question  no. 1663, for  27.7.2018 Gross Non-Performing  Asset ratios of Public Sector Banks

|   S. No. | Bank          |   As on 31.3.2015 |   As on 31.3.2016 |   As on 31.3.2017 |   As on 31.3.2018 |
|----------|---------------|-------------------|-------------------|-------------------|-------------------|
|        1 | AllahabadBank |              5.46 |              9.76 |             13.09 |             15.96 |
|        2 | AndhraBank    |              5.31 |              8.39 |             12.25 |             17.09 |
|        3 | Bank ofBaroda |              3.72 |              9.99 |             10.46 |             12.26 |

|   4 | Bank ofIndia               |   5.55 |   13.07 |   13.22 | 16.58          |
|-----|----------------------------|--------|---------|---------|----------------|
|   5 | Bank ofMaharashtra         |   6.33 |    9.34 |   16.93 | 19.48          |
|   6 | CanaraBank                 |   3.89 |    9.4  |    9.63 | 11.84          |
|   7 | CentralBankof India        |   6.09 |   11.95 |   17.81 | 21.48          |
|   8 | Corporation Bank           |   4.81 |    9.98 |   11.7  | 17.35          |
|   9 | DenaBank                   |   5.45 |    9.98 |   16.27 | 22.04          |
|  10 | IDBI BankLimited           |   5.88 |   10.98 |   21.25 | 27.95          |
|  11 | IndianBank                 |   4.4  |    6.66 |    7.47 | 7.37           |
|  12 | IndianOverseasBank         |   8.33 |   17.4  |   22.39 | 25.28          |
|  13 | OrientalBankof Commerce    |   5.18 |    9.57 |   13.73 | 17.63          |
|  14 | Punjab&SindBank            |   4.76 |    6.48 |   10.45 | 11.19          |
|  15 | PunjabNationalBank         |   6.55 |   12.9  |   12.53 | 18.38          |
|  16 | SyndicateBank              |   3.13 |    6.7  |    8.5  | 11.53          |
|  17 | UCOBank                    |   6.71 |   15.43 |   17.12 | 24.64          |
|  18 | UnionBankof India          |   4.96 |    8.7  |   10.85 | 15.73          |
|  19 | UnitedBank ofIndia         |   9.49 |   13.26 |   15.53 | 24.10          |
|  20 | VijayaBank                 |   2.79 |    6.64 |    6.59 | 6.34           |
|  21 | StateBank ofIndia (SBI)    |   4.25 |    6.5  |    6.9  | 10.91          |
|  22 | StateBank ofBikaner&Jaipur |   4.14 |    4.82 |   15.52 | Merged withSBI |
|  23 | StateBank ofHyderabad      |   4.59 |    5.75 |   20.77 |                |
|  24 | StateBank ofMysore         |   4.01 |    6.56 |   25.68 |                |
|  25 | StateBank ofPatiala        |   5.41 |    7.87 |   23.15 |                |
|  26 | StateBank ofTravancore     |   3.37 |    4.78 |   16.79 |                |
|  27 | BhartiyaMahilaBank         |   0    |    0.22 |    9.54 |                |

Source: RBI, global operations (Mar-2018 provisional data)

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