Lok Sabha Question No. 45 (UNSTARRED), answered on 2022-07-18
Subject: NPAs of PSB
Ministry: FINANCE
Asked by: Girish Bhalchandra Bapat, Chandra Sekhar Sahu, Rahul Ramesh Shewale, Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-45

ANSWERED ON- 18/07/2022

## NPAs of PSBs

## 45. SHRI GIRISH BHALCHANDRA BAPAT SHRI CHANDRA SEKHAR SAHU SHRI RAHUL RAMESH SHEWALE DR. PRITAM GOPINATHRAO MUNDE

Will the Minister of FINANCE be pleased to state:-

(a) the details of the total Gross Non-Performing Assets (NPAs) of Public Sector Banks  (PSBs)  and  Scheduled  Commercial  Banks  as  on  March  31,  2022  as compared to corresponding period of previous year, bank-wise;

(b) the  details  of  amount  of  NPAs  recovered,  amount  of  NPAs  written  off  and new accretion to NPAs in the financial year 2021-22;

(c) whether  the  Government  has  made  any  study  to  find  out  the  reasons  and factors responsible for defaulter for not repaying their loans;

(d) if so, the details thereof;

(e) whether the Government and RBI have issued any guidelines to check the cases of NPAs of PSBs and Scheduled Commercial Banks in the country; and

(f) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

(a) and (b): Bank-wise details of gross NPAs, amount of NPAs recovered, amount of  NPAs  written  off  and  new  accretion  to  NPAs  of  Public  Sector  Banks  and Scheduled  Commercial  Banks  during  the  financial  years  (FY)  2020-21  and  FY 2021-22 (provisional data) are at Annex.

(c) to (f): The occurrence of non-performing assets (NPAs) is a normal, although undesirable corollary to the business of banking. Build-up of NPAs may generally be  attributed  to  several  factors,  including, inter  alia, prevailing  macroeconomic conditions,  sectoral  issues,  global  business  environment,  delayed  recognition  of stress by the banks, aggressive lending during upturns, improper risk pricing and poor  credit  underwriting,  lack  of  specialised  skills  in  project  appraisals,  flawed governance structures, time and cost overruns in project implementation and lack of suitable legal mechanisms for resolution of NPAs .

Government and RBI regularly issue guidelines and have taken several initiatives aimed at resolution of long-standing stressed assets on the books of banks as well as timely identification and recognition of stress immediately upon default and take corrective  actions  for  mitigation  of  the  same.  These  measures  complement  the statutory  provisions  already  available  to  lenders  for  recovery  and  resolution, including, inter  alia, Recovery  of  Debts  and  Bankruptcy  Act,  1993,  Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Insolvency & Bankruptcy Code, 2016 (IBC).

As a result of comprehensive steps taken by the Government and RBI to check the cases of NPAs and bring them down, Scheduled Commercial Banks recovered Rs. 8,60,369 crore over the last eight financial years (provisional data) from NPAs. The steps taken include, inter alia , the following -

- (1) Change  in  credit  culture  has  been  effected,  with  the  Insolvency  and Bankruptcy  Code  (IBC)  fundamentally  changing  the  creditor-borrower relationship, taking away control of the defaulting company from promoters/owners,  and  debarring  wilful  defaulters  from  the  resolution process.  To  make  the  process  more  stringent,  personal  guarantor  to corporate debtor has also been brought under the ambit of IBC. Under IBC, resolution plans have been approved in 480 cases up to March 2022, with Rs. 2.34 lakh crore amount realisable by financial creditors.
- (2) Central Repository of Information on Large Credits (CRILC) has been set up by RBI to collect, store and disseminate credit data to lenders, and banks are  required  to  submit  report  on  weekly  basis  to  CRILC,  in  case  of  any default by borrowing entities with exposure of Rs. 5 crore and above.
- (3) Guidelines  have  been  issued in respect to  prudential  framework  for resolution  of  stressed  assets  which  provides  for  early  recognition  and resolution of default by large borrowers within a time bound manner and dis-incentivise delayed resolution in the form of additional provisioning to be maintained by the lenders.
- (4) Under  the  PSB  Reforms  Agenda,  comprehensive  and  automated  Early Warning  Systems  (EWS)  were  instituted  in  PSBs,  with  ~80  EWS  triggers and  use of third-party data for  time-bound  remedial actions in the borrowing accounts. further, PSBs have created Stressed Asset Management Verticals for stringent recovery, segregated pre- and post-sanction follow-up roles for clean and effective monitoring, and engaging specialised monitoring agencies for monitoring of large-value accounts.

In addition to this, steps were also taken to deter defaulters, including, inter alia, the following -

- (1) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has been amended to make it more effective, with provision for three months' imprisonment in case the borrower does
2. not provide asset details, and for the lender to get possession of mortgaged property within 30 days.
- (2) As per RBI instructions, wilful defaulters are not sanctioned any additional facilities  by  banks  or  financial  institutions,  and  their  unit  is  debarred from floating new ventures for five years.
- (3) Wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise  funds, vide Securities  and  Exchange  Board  of  India  (Substantial Acquisition of Shares and Takeovers) Regulations, 2016.
- (4) Jurisdiction of Debt Recovery Tribunal (DRTs) was increased from Rs. 10 lakh  to  Rs.  20  lakh  to  enable  the  DRTs  to  focus  on  high  value  cases resulting in higher recovery for the banks and financial institutions. Six new DRTs have also been established to expedite recovery.
- (5) All Credit Institutions have been mandated by RBI to become members of all  credit  information  companies  (CICs)  and  submit  credit  information, including historical data, pertaining to borrowers to CICs, and the data to be updated regularly and to be shared with other credit institutions.

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## Annex referred to in

## Lok Sabha Unstarred question no. 45, regarding NPAs of PSBs

## Details of Non-performing Assets of Scheduled Commercial Banks

| Bank                                            | Gross NPAs      | Gross NPAs        | Amount Recovered   | Amount Recovered   | Amount written-off   | Amount written-off   | New Accretion to NPAs   | New Accretion to NPAs   |
|-------------------------------------------------|-----------------|-------------------|--------------------|--------------------|----------------------|----------------------|-------------------------|-------------------------|
| Bank                                            | As on 31.3.2021 | As on 31.3.2022 * | FY 2020-21         | FY 2021-22 *       | FY 2020-21           | FY 2021-22 *         | FY 2020-21              | FY 2021-22 *            |
| American Express Banking Corp.                  | 253             | 227               | 105                | 476                | 127                  | 215                  | 370                     | 286                     |
| Au Small Finance Bank Limited                   | 1,503           | 924               | 30                 | 110                | 115                  | 188                  | 1,273                   | 1,431                   |
| Australia and New Zealand Banking Group Limited | 25              | 25                | -                  | -                  | -                    | -                    | -                       | -                       |
| Axis Bank Limited                               | 22,682          | 18,566            | 2,938              | 2,948              | 12,018               | 9,126                | 16,211                  | 18,576                  |
| Bandhan Bank Limited                            | 5,758           | 6,380             | 12                 | 555                | 2,038                | 3,247                | 6,888                   | 9,430                   |
| Bank of Bahrain & Kuwait B.S.C.                 | 14              | 17                | 6                  | 5                  | 61                   | 9                    | 3                       | 17                      |
| Bank of Baroda                                  | 66,671          | 54,059            | 5,372              | 6,054              | 14,782               | 17,967               | 17,952                  | 11,046                  |
| Bank of Ceylon                                  | 33              | 54                | 1                  | 3                  | 1                    | 0                    | 15                      | 23                      |
| Bank of India                                   | 56,535          | 45,605            | 4,155              | 6,761              | 8,815                | 10,443               | 8,815                   | 8,919                   |
| Bank of Maharashtra                             | 7,780           | 5,327             | 1,458              | 1,174              | 4,931                | 3,118                | 2,202                   | 2,182                   |
| Bank of Nova Scotia                             | 64              | 64                | 5                  | -                  | -                    | -                    | -                       | 0                       |
| Barclays Bank PLC                               | 268             | 111               | 41                 | -                  | 73                   | 163                  | 51                      | 57                      |
| BNP Paribas                                     | 7               | 6                 | -                  | -                  | -                    | 1                    | -                       | -                       |
| Canara Bank                                     | 60,288          | 54,436            | 7,286              | 8,577              | 7,642                | 8,210                | 16,482                  | 17,954                  |
| Capital Small Finance Bank Limited              | 78              | 117               | 2                  | 6                  | 0                    | 0                    | 25                      | 78                      |
| Central Bank of India                           | 29,277          | 28,156            | 2,675              | 3,110              | 5,992                | 1,236                | 6,458                   | 5,797                   |
| Citibank N.A.                                   | 991             | 758               | 296                | 391                | 370                  | 576                  | 853                     | 952                     |
| City Union Bank Limited                         | 1,893           | 1,933             | 195                | 442                | 412                  | 629                  | 1,113                   | 1,276                   |
| Cooperatieve Rabobank U.A.                      | 372             | 150               | -                  | -                  | -                    | 175                  | 202                     | -                       |
| Credit Agricole Corporate and Investment Bank   | 3               | 3                 | -                  | -                  | -                    | -                    | -                       | -                       |
| CSB Bank Limited                                | 393             | 290               | 65                 | 527                | 138                  | 110                  | 201                     | 757                     |
| CTBC Bank Co., Ltd.                             | 2               | 1                 | 1                  | 0                  | -                    | -                    | -                       | -                       |
| DBS Bank India Ltd.                             | 488             | 4,557             | 16                 | 771                | 139                  | 438                  | 145                     | 611                     |
| Lakshmi Vilas Bank Ltd (LVB) #                  | 4,845           | -                 | 132                | -                  | 108                  | -                    | 1,045                   | -                       |

amount in crore Rs.

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|                                           | Gross NPAs      | Gross NPAs        | Amount Recovered   | Amount Recovered   | Amount written-off   | Amount written-off   | New Accretion to NPAs   | New Accretion to NPAs   |
|-------------------------------------------|-----------------|-------------------|--------------------|--------------------|----------------------|----------------------|-------------------------|-------------------------|
| Bank                                      | As on 31.3.2021 | As on 31.3.2022 * | FY 2020-21         | FY 2021-22 *       | FY 2020-21           | FY 2021-22 *         | FY 2020-21              | FY 2021-22 *            |
| DCB Bank Limited                          | 1,083           | 1,290             | 75                 | 531                | 126                  | 88                   | 686                     | 1,772                   |
| Deutsche Bank Ag                          | 1,457           | 2,732             | 177                | 290                | 485                  | 213                  | 709                     | 2,086                   |
| Doha Bank Q.P.S.C                         | 27              | 27                | -                  | -                  | -                    | -                    | 18                      | -                       |
| Equitas Small Finance Bank Limited        | 643             | 837               | 81                 | 312                | 245                  | 360                  | 589                     | 1,389                   |
| ESAF Small Finance Bank Limited           | 564             | 950               | 4                  | 44                 | -                    | 74                   | 473                     | 1,085                   |
| Federal Bank Ltd                          | 4,602           | 4,137             | 367                | 824                | 398                  | 929                  | 1,922                   | 1,869                   |
| Fincare Small Finance Bank Limited        | 354             | 573               | 1                  | 82                 | 28                   | 370                  | 351                     | 1,098                   |
| Firstrand Bank Ltd                        | 28              | -                 | -                  | -                  | -                    | -                    | -                       | -                       |
| HDFC Bank Ltd.                            | 14,999          | 16,101            | 2,708              | 6,844              | 9,289                | 9,405                | 12,220                  | 25,999                  |
| Hongkong and Shanghai Banking Corpn. Ltd. | 913             | 644               | 41                 | 73                 | 185                  | 234                  | 570                     | 408                     |
| ICICI Bank Limited                        | 40,841          | 33,295            | 4,704              | 6,223              | 9,507                | 10,148               | 15,846                  | 19,036                  |
| IDBI Bank Limited                         | 36,212          | 34,115            | 4,518              | 2,779              | 8,392                | 2,889                | 2,632                   | 5,866                   |
| IDFC First Bank Limited                   | 4,303           | 4,469             | 407                | 1,258              | 1,433                | 4,202                | 4,035                   | 7,552                   |
| Indian Bank                               | 38,455          | 35,214            | 3,856              | 3,475              | 8,371                | 8,347                | 9,394                   | 10,136                  |
| Indian Overseas Bank                      | 16,323          | 15,299            | 1,635              | 1,378              | 4,618                | 3,769                | 3,678                   | 4,817                   |
| Indusind Bank Ltd                         | 5,795           | 5,517             | 1,558              | 3,403              | 4,055                | 4,385                | 7,664                   | 10,103                  |
| Industrial and Commercial Bank of China   | -               | -                 | -                  | -                  | 35                   | -                    | -                       | -                       |
| Jammu & Kashmir Bank Ltd                  | 6,955           | 6,521             | 403                | 602                | 1,185                | 758                  | 1,261                   | 2,918                   |
| Jana Small Finance Bank Limited           | 858             | 757               | 17                 | 572                | 233                  | 585                  | 828                     | 1,304                   |
| Karnataka Bank Ltd                        | 2,588           | 2,251             | 438                | 485                | 1,060                | 585                  | 1,346                   | 1,553                   |
| Karur Vysya Bank Ltd                      | 4,143           | 3,431             | 377                | 574                | 619                  | 879                  | 959                     | 843                     |
| KEB Hana Bank                             | 40              | 40                | 1                  | -                  | 12                   | -                    | -                       | -                       |
| Kotak Mahindra Bank Ltd.                  | 7,426           | 6,470             | 1,155              | 2,074              | 628                  | 1,230                | 5,488                   | 4,316                   |
| Mizuho Bank Ltd                           | 6               | 6                 | -                  | -                  | -                    | -                    | -                       | -                       |
| Nainital Bank Ltd                         | 651             | 521               | 51                 | 115                | 1                    | 119                  | 173                     | 125                     |
| North East Small Finance Bank Limited     | 192             | 190               | 3                  | 18                 | -                    | 81                   | 170                     | 97                      |
| PT Bank Maybank Indonesia TBK             | 18              | -                 | -                  | -                  | -                    | 18                   | -                       | -                       |
| Punjab and Sind Bank                      | 9,334           | 8,565             | 879                | 1,011              | 71                   | 1,134                | 1,557                   | 2,065                   |
| Punjab National Bank                      | 1,04,423        | 92,448            | 11,442             | 15,788             | 15,877               | 18,312               | 28,940                  | 27,378                  |

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|                                     | Gross NPAs      | Gross NPAs        | Amount Recovered   | Amount Recovered   | Amount written-off   | Amount written-off   | New Accretion to NPAs   | New Accretion to NPAs   |
|-------------------------------------|-----------------|-------------------|--------------------|--------------------|----------------------|----------------------|-------------------------|-------------------------|
| Bank                                | As on 31.3.2021 | As on 31.3.2022 * | FY 2020-21         | FY 2021-22 *       | FY 2020-21           | FY 2021-22 *         | FY 2020-21              | FY 2021-22 *            |
| Qatar National Bank (Q.P.S.C.)      | 50              | 53                | -                  | -                  | -                    | -                    | 50                      | 3                       |
| RBL Bank Limited                    | 2,602           | 2,728             | 675                | 899                | 1,675                | 2,294                | 3,148                   | 3,943                   |
| Sberbank                            | 92              | 41                | 0                  | 0                  | -                    | 50                   | -                       | -                       |
| SBM Bank (India) Ltd.               | 88              | 93                | 16                 | 5                  | 12                   | 19                   | 1                       | 29                      |
| Shinhan Bank                        | 128             | 154               | 1                  | 16                 | -                    | -                    | 29                      | 41                      |
| Shivalik Small Finance Bank Limited | -               | 33                | -                  | 2                  | -                    | -                    | -                       | 8                       |
| Societe Generale                    | 79              | 79                | -                  | -                  | -                    | -                    | -                       | -                       |
| Sonali Bank                         | 4               | 4                 | 0                  | -                  | -                    | -                    | -                       | -                       |
| South Indian Bank Ltd               | 4,143           | 3,648             | 179                | 1,152              | 1,135                | 700                  | 2,340                   | 2,159                   |
| Standard Chartered Bank             | 4,674           | 3,886             | 446                | 650                | 1,697                | 1,325                | 4,513                   | 2,319                   |
| State Bank of India                 | 1,26,389        | 1,12,023          | 13,381             | 10,343             | 34,402               | 19,666               | 28,563                  | 25,021                  |
| Suryoday Small Finance Bank Limited | 394             | 598               | 4                  | 59                 | 97                   | 231                  | 399                     | 533                     |
| Tamilnad Mercantile Bank Ltd        | 1,085           | 571               | 118                | 355                | 393                  | 321                  | 587                     | 518                     |
| The Dhanalakshmi Bank Ltd           | 657             | 534               | 97                 | 165                | 14                   | 83                   | 391                     | 364                     |
| UCO Bank                            | 11,352          | 10,237            | 1,168              | 1,299              | 9,410                | 3,851                | 3,102                   | 6,123                   |
| Ujjivan Small Finance Bank Limited  | 1,071           | 1,284             | 15                 | 520                | 74                   | 789                  | 1,033                   | 2,088                   |
| Union Bank of India                 | 89,788          | 79,587            | 5,190              | 5,852              | 16,983               | 19,484               | 17,443                  | 22,877                  |
| United Overseas Bank Ltd            | 75              | 75                | -                  | -                  | -                    | -                    | -                       | -                       |
| Utkarsh Small Finance Bank Limited  | 315             | 648               | 1                  | 50                 | 35                   | 219                  | 310                     | 654                     |
| Yes Bank Ltd.                       | 28,610          | 27,976            | 3,288              | 1,868              | 12,240               | 971                  | 12,037                  | 5,795                   |

Source: RBI

* provisional data

# LVB was amalgamated with DBS Bank India Ltd. on 27.11.2020. However, LVB data was reported as a separate entity till March 2021.