Lok Sabha Question No. 76 (STARRED), answered on 2018-12-14
Subject: Non-Performing Assets
Ministry: FINANCE
Asked by: BHARATI DHIRUBHAI SHIYAL, RAMESH CHANDER KAUSHIK

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

## LOK SABHA STARRED QUESTION NO: †*76

TO BE ANSWERED  ON THE 14th DECEMBER,  2018/AGRAHAYANA 23, 1940 (SAKA)

## QUESTION NON-PERFORMING  ASSETS

## †*76: DR. BHARATIBEN D. SHYAL: SHRI  RAMESH  CHANDER  KAUSHIK:

Will  the Minister  of FINANCE  be pleased to state:

- (a) the number  and details  of corporate  houses and farmers  against  whom  loan  is outstanding  under Non-Performing  Asset (NPA's)  including  those whose  dues under NPAs  are over Rupees  one thousand  crores;  and
- (b) the number  and details  of corporate  houses and farmers  out of the above against  whom  action  is being taken?

ANSWER FINANCE  MINISTER (SHRI ARUN  JAITLEY)

- (a) and (b): A statement  is laid  on the Table  of the House.

## STATEMENT AS REFERRED TO IN REPLY TO PARAs (A) AND (B) OF LOK SABHA STARRED  QUESTION  NO.  *76  FOR  ANSWER  ON  14th   DECEMBER,  2018/ AGRAHAYANA   23,  1940   (SAKA)   BY  DR.  BHARATIBEN  D.  SHYAL  AND  SHRI RAMESH CHANDER KAUSHIK  REGARDING  NON-PERFORMING  ASSETS

(a) and (b): Reserve  Bank of India (RBI) has informed  that  it does not have the required  information regarding  the number  and details  of corporate  houses and farmers  against  whom  loan  is outstanding under NPAs,  and also the number  and details  against  which  action is  being  taken.

RBI has further  informed  that  as per data on borrower  groups  excluding  individuals/GovernmentPSUs submitted  by  Scheduled  Commercial Banks (SCBs), as on 30.9.2018,  there  were  568 borrowers who  had  NPAs   with   SCBs,  excluding   individuals/Government-PSUs, involving   an  amount   of Rs. 6,28,560 crore,  of which  95 were  borrowers  with  aggregate gross NPAs  of more  than  Rs. 1,000 crore,  involving  funded outstanding  amount  of Rs. 5,57,110 crore.  RBI has also apprised  that  gross NPAs in Agriculture  and Allied  Activities  were  Rs. 1,01,508 crore  as on 30.9.2018.

A number  of measures  have been taken  to expedite  and enable  resolution  of NPAs  of PSBs over the last  four  years.   The   Insolvency   and  Bankruptcy Code,   2016  (IBC)  has  been  enacted   to  create   a unified   framework   for  resolving   insolvency   and  bankruptcy matters.   Under   this,   by   adopting   a creditor-in-saddle   approach,   with   the  interim   resolution   professional   taking   over   management   of affairs of corporate  debtor  at the outset,  the incentive  to resort  to abuse of the legal  system  has been taken   away.   This,   coupled   with   debarment   of  wilful   defaulters   and  persons   associated   with   NPA accounts   from  the  resolution   process,   has  effected  a  fundamental   change   in  the  creditor-debtor relationship. The Banking  Regulation  Act,  1949 has been amended,  to provide  for authorisation to RBI to issue directions  to banks  to initiate  the insolvency  resolution  process under  IBC. As per RBI's directions,  cases have been filed under IBC before the National  Company  Law  Tribunal  (NCLT)  in respect of 41 borrowers,  12 of which  had cumulative  outstanding  amount  of Rs. 1,97,769  crore  as on 31.3.2017  and the remaining  29 had outstanding  amount  of Rs. 1,35,846 crore  as on 30.6.2017.

SARFAESI   Act  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  get possession of mortgaged  property  within  30 days.  Also,  six new  Debts Recovery  Tribunal  have been established  to expedite  recovery.

In  addition,   under the  PSBs  Reforms   Agenda,   PSBs  have  created   Stressed  Asset  Management verticals   for  stringent   recovery,   segregated   pre-  and  post-sanction   follow-up   roles   for  clean   and effective  monitoring, initiated   creation   of  online   one-time   settlement   platforms   and  committed   to monitoring  large-value  accounts  through  specialised  monitoring agencies.

Enabled  by  these  measures,   as  per  RBI  data  on  global   operations   (with provisional   data  for September   2018),  during   the  last  three   and  a  half  financial   years,   NPAs   of  SCBs  reduced   by Rs. 2,83,770 crore  due to recoveries.