Lok Sabha Question No. 3078 (UNSTARRED), answered on 2021-03-15
Subject: NPAs of PSBs
Ministry: FINANCE
Asked by: Goddeti Madhavi, Sanjay(Kaka) Ramchandra Patil, Magunta Sreenivasulu Reddy, Beesetti  Venkata Satyavathi, Midhun Reddy, Chinta Anuradha

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-3078

ANSWERED ON- 15/03/2021

## NPAs of PSBs

3078.SHRIMATI GODDETT MADHAVI SHRI SANJAY KAKA PATIL SHRI MAGUNTA SREENIVASULU REDDY DR BEESETTI VENKATA SATYAVATHI SHRI PV. MIDHUN REDDY SHRIMATI CHINTA ANURADHA

Will the Minister of FINANCE be pleased to state:-

- a) the total value of Non-Performing Assets (NPAs) in Public Sector Banks (PSBs) in India;
2. the details of the percentage change in the total value of Non-Performing Assets from 2019-20 to 2020-21, bank-wise; and
3. the details of the measures taken by the Government to deal with the NPAs?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI ANURAG SINGH THAKUR)

- (a) to (c): As per Reserve Bank of India (RBI) aggregate gross advances of PSBs As per RBI inputs, the primary reasons for spurt in stressed assets have been observed to inter   alia,  aggressive practices, wilful default/loan frauds/and economic bank balance-sheets revealed high incidence of NPAs As a result of AQR and subsequent transparent recognition by banks, stressed accounts were reclassified as NPAs and expected losses on stressed loans, not provided for earliet under flexibility given to restructured loans; were provided all such schemes for restructuring stressed loans were withdrawn in the financial year (FY) 2017-18. Primarily as a result of transparent recognition of sttessed assets as NPAs, as per RBI data on global operations, gross NPAs of PSBs rose from Rs. 2,79,016 crore as on 31.3.2015, to Rs. 8,95,601 crore as on 31.3.2018, and as a result of Government s strategy of recognition, resolution, recapitalisation and reforms, have since declined to Rs. 6,78,317 crore as on 31.3.2020. As per audited financials of PSBs, data, lending be,

As per RBI data on global operations, bank-wise details of percentage in gtoss NPAs of PSBs as on 31.12.2020 over that of 31.3.2020, ate at Annex: change

Government has implemented a comprehensive consisting of tecognition of NPAs and reforms in PSBs and the wider financial ecosystem for a tesponsible and clean system; Comprehensive measures have been taken to deal with NPAs; including inter-alia; the strategy, PSBs, following:

- 2) The Securitisation and Reconstruction of Financial Assets and Enforcement of Interest 2002 has been amended to make it more effective; with provision fof three months' imprisonment in case the borrower does not provide asset details, and for the lender to possession of mortgaged property within 30 Security Act, get days.
- (1) in ctedit culture has been effected,,with the Insolvency and Bankruptcy Code (IBC) fundamentally changing the creditor-borrower relationship, away conttol of the defaulting company from promoters/owners and debatring wilful defaulters from the resolution process As per the Insolvency and Bankruptcy Board of India resolution plans under IBC have been approved in 277 cases till September 2020, with Rs. 1.89 lakh crore realisable amount by financial creditors Change taking data,
- (3) As per RBI instructions, Wilful defaulters ate not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from new ventures for floating
- 4) Wilful defaulters and companies with wilful defaulters as promoters / directors have been debarred from accessing   capital matkets to raise vide   Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2016. funds,
5. Over the last six financial years and the cutrent financial yeat; Government has infused capital of Rs 3.24 lakh ctore in PSBs, with PSBs themselves mobilising Rs. 2.77 lakh crore from market in the form of both equity and bonds, and from monetising their non-core assets to extent of Rs. 36,226 crore, enabling PSBs to pursue timely resolution of NPAs: along
- (5)   Pecuniary jutisdiction of Debt Recovery Tribunal (DRTs) was increased from Rs.  10 lakh to Rs 20 Jakh to enable the DRTs to focus on high value cases in higher recovery for banks and financial  institutions. Six new DRTs have   also been established to expedite recovery: resulting
7. reforms have been instituted in PSBs a8 part of the Public Sector Banks Reforms Agenda, including the following: Key
8. Stressed Asset Management verticals were set up in banks  for focused slippage prevention; recovery atrangement and time-bound action in respect of large-value stressed assets:
9. loan policies of PSBs now mandate   tying up necessary clearances/approvals and linkages before disbursement; scrutiny of group balancesheet and of cash flows, non-fund and tail risk appraisal in project ringfencing financing:
10. (iv) Monitoring has been strictly segregated from sanctioning roles in high-value loans, and specialised monitoring agencies combining financial and domain knowledge have been deployed for effective monitoring of loans above Rs 250 crore
11. (iii) Use of thitd-party data sources for comprehensive due diligence actoss data sources has been instituted, thus mitigating tisk on account of misrepresentation and fraud.
12. To ensure timely and better realisation in one-time settlements (OTSs) , end-to-end OTS platform have set up. been

## Lok Sabha unstarred question no. 3078, regarding NPAs of PSBs

## Details of percentage change in gross NPAs of PSBs in December 2020 over March 2020

| Bank                  | Percentage change   |
|-----------------------|---------------------|
| Bank of Baroda        | -8.94               |
| Bank of India         | 10.65               |
| Bank of Maharashtra   | -33.57              |
| Canara Bank           | -18.55              |
| Central Bank of India | -9.52               |
| Indian Bank           |                     |
| Indian Overseas Bank  | -15.87              |
| Punjab and Sind Bank  | -4.33               |
| Punjab National Bank  | -10.16              |
| UCO Bank              | -40.67              |
| Union Bank of India   | -9.49               |
| State Bank of India   | -21.36              |

Source: Reserve Bank of India