Lok Sabha Question No. 2971 (UNSTARRED), answered on 2022-03-21
Subject: OTS of Bank Loans
Ministry: FINANCE
Asked by: Nama Nageswara Rao

## GOVERNMENT OF INDIA MNISTRY OF FINANCE

## LOK SABHA

## UNSTARRED QUESTION NO-2971 ANSWERED ON 21/03/2022

## OTS OF BANK LOANS

## 2971. SHRI NAMA NAGESWARA RAO

Will the Minister of FINANCE be pleased to state:

- whether there are any guidelines for One Time Settlement(OTS) of bank loans and if SO, the details thereof including details and number of cases of OTS sanctioned/ approved by nationalised banks the last three years, bankduring wise;
- (6) the amount recovered OTS in each case and against total amount (Principal amount plus Interest) , bankand against wise;
- the total amount waived off in each case (Principal amount plus Interest) , bank- wise?

## ANSWER

## THE MNISTER OF STATE IN TH MNISTRY OF FINANCE

## (DR BHAGWAT KARAD)

to (c): As per Reserve Bank of India instructions, banks are to have a Boardapproved loan recovery policy; which may cover; inter alia, negotiated settlements through compromise,  including one-time settlements   (OTS); under   which   recovery in nonperforming asset (NPA) loan accounts are to be effected to the maximum extent possible at minimum expense, with a view help banks   promptly their funds with advantage. All nationalised banks have Board-approved loan recovery policy in place. As per received from the eleven nationalised banks, OTS were approved in 38,23,432 cases which are at Annex: Further, aggregate amount of Rs. 60,940 crore has been recovered through OTS by these nationalised banks the last three financial years and up to December 2021 of the current financial year: required recycle during during

With regard to case-wise  details, banks  have that borrower-wise (case-wise) information on OTS can not be shared under section 13 of the Banking Companies (Acquisition and Transfer of Undertakings) Act; 1970/1980. apprised

## Annex referred to in Lok Sabha unstarred question no. 2971, regarding OTS of Bank Loans

## Details of One-Time Settlement approved by Nationalised Banks during the last three financial years

| S.N.   | Bank                  | Number of OTS approved   |
|--------|-----------------------|--------------------------|
| 1      | Bank of Barodal       | 4,34,869                 |
| 2      | Bank of India         | 4,97,698                 |
| 3      | Bank of Maharashtra   | 63,202                   |
| 4      | Canara Bank?          | 4,18,734                 |
| 5      | Central Bank of India | 4,02,469                 |
| 6      |                       | 4,27,279                 |
|        | Indian Overseas Bank  | 7,33,213                 |
| 8      | Punjab and Sind Bank  | 20,607                   |
| 9      | Punjab National Bankt | 8,87,772                 |
| 10     | UCO Bank              | 2,38,090                 |
| 11     | Union Bank of India5  | 2,99,499                 |
| Total  | Total                 | 38,23,432                |

Source: Banks

- 2 Syndicate Bank was amalgamated into Canara Bank with effect from 1.4.2020
- Vijaya Bank and Dena Bank were amalgamated into Bank of Baroda with effect from 1.4.2019
- 3 Allahabad Bank was amaigamated into Indian Bank with effect from 1.4.2020
- 5 Andhra Bank and Corporation Bank were amalgamated into Union Bank of India with effect from 1.4.2020
- Oriental Bank of Commerce and United Bank of India were amalgamated into Punjab National Bank with effect from 1.4.2020

Note: The figures of the banks amalgamated are incorporated into those for the respective bank into which were amalgamated. they-