Lok Sabha Question No. 834 (UNSTARRED), answered on 2022-02-07
Subject: Bank NPAs
Ministry: FINANCE
Asked by: Parvesh Sahib Singh

## GOVERNMENT OF INDIA MINISTR Y OF FINANCE

ANSWERED ON- 7/2/2022

## LOK SABHA UNSTARRED QUESTION NO-834

## BANK NPAs

## 834. SHRI PARVESH SAHIB SINGH VERMA

Will the Minister of FINANCE be pleased to state:

- (a) the current status of NPAs ad bad loans in the banks and Non-Banking Financial Companies (NBFCs);
- (6) the details about the proportion of distribution of bad loans between public and private banks the last three years; during
- the corrective measures taken by the Government to tackle penetration and ensure do not turn into bad loans; and they

(d) hether the Gorernment is of the view that banks should disclose inspection conducted by the Reserve Bank of India and if to convince the banks to do so? SO,

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR: BHAGWAT KARAD)

(a): As per Reserve Bank of India (RBI) data on global operations, assets Rs. 9,33,779 crore (GNPA ratio of 9.07%/) as on 31.3.2019 8,00,463 crore (GNPA ratio of 6. as on 30.9.2021. Further; GNPAs of Deposit Taking-NBFCs and on 30.9.2021. 93%/) taking

6): As per RBI inputs; GNPAs of Public Sector Banks (PSBs) as a proportion to that of SCBs have decreased from 79.2% a8 on 31.3.2019 to 75.7%/ as on 31.3.2020 to 73.8%/ as and further to 72.3%/ as on 30.9.2021,\_ whereas GNPAs of Private Sector Banks   (PVBs)" as a proportion to that of SCBs have   increased   from 19.4%/ as on 31.3.2019 to 23.0% as on 31.3.2020 to 24.2% as on 31.3.2021 and further to 24.9%/ as on 30.9.2021.

- (c): Government and RBI taken sereral initiatives t0 increase the credit in the economy, which includes, inter the penetration have alid, following
- 44.51 crore accourts opened under Pradhanmantri Jan Dhan Yojana scheme with National Mission (PMJDY), a to ensure access to financial services, namely, a basic and deposit accounts, remittance; credit; insurance; pension in an affordable manner; savings
- ii. Overdraft of limit upto Rs. 10,000 extended eligible PMJDY account holders; facility
- iv Operationalisation of enhanced access to credit under   Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) schemes employment program; under which 78,66,199 and 16,63,704 beneficiaries, respectively have been provided credit facilities in the last three financial years;
- iii. The PH Street Vendor'$ AtmaNirbhar Nidhi (PM SVANidhi) scheme launched by the   Government help street rendors, impacted by COVID-19 pandemic, tO resume their   livelihood activities has enabled 32.69 lakh street vendors to access credit amounting to Rs. 3,364 crore till 31.1.2022; poor
- Bank credit to Non-Bankirig Financial Institutions (NBFCs) other than NBFCsMicro Finance Institutions (MFls) for on-lending to agriculture; micro and small enterprises, and has been made eligible for classification as priority sector; vi\_ Digitalisation in [2 increase 1each of institutional credit; housing lending
- b Online bill discounting for MSMEs has enabled on competitive basis Discounting System (TReDS) platforin; been
- a Initiation of digital has been made contactless through PSBloansin59minutes.om; tO provide online in principle approval of loans to Small and Medium Enterpri:es (MSMEs), Home Loans, Personal Loans and Auto Loans to individuals; lending Micro,
- C End-to-end autemated digital iencirg nas been introduced in larger PSBs for unsecured personal lozns (in live PSBs), loans to micro-enterprises (Shishu Mudr: PSBs);
- up Systems and Centralised Processing (TAT): Setting
- d\_ Custorer- need-driven, analytics-base credit offers have been given an impetus, resulcng in Rs 49,777 crcre of fresh retail loan disbursements by the seven
- vii Specific target of cf Adjusted Net Bank Credit (ANBC) for small and marginal farmers has been Exed fr ail com nercial banks, to be implemented in phased manner of a peroal
- on 16.10.2021 to make loans available to eligible botrowers, through special camps across the country by aggregate loan amount of Rs: 94,063 crore has been sanctioned up to 26.11.2021,as per inputs from banks; and
- jx\_ To ensure availability of agriculture credit at a reasonable cost / zed'ced rate; an interest subvention scheme (2%/) for short term crop loans Rs. 3 lakh is implemented through Public Sector Banks and Private Sector Banks (reimbursement through RBI), Regional Rural Banks and  Cooperative Banks (reimbursement through NABARD) upto being

Further; several measures have been taken to promote repayment and prevent those loan accounts into non-performing assets (NPAs), which includes, inter the following \_ regular turning alia,

- use of third party data sources in PSBs for comprehensive due across data sources at the sanction diligence stage itsell to mitigate risk on account of misrepresentation and fraud; instituting
- iii. institution Of comprehensive; automated Early W with ~80 EWS Systems (EWS) in triggers, third-party data and  workflow for time-bound remedial actions, to proactively detect stress and reducing into NPAs; arning banks, using slippage \_
- ii. classification of accounts as special mentioned accounts (SHA) for early recognition of signs of incipient stress in default in timely servicing of debt obliga banks to initiate timely remedial actions to their potential slippages into NPAs; prevent resulting tions, enabling
- iv of eligibility for the next of capital loan with an enhanced limit with on-time Or early loan under PM SVANidhi scheme; and repayment of linking cycle working existing
- repayment behavior of borrowers in their loan accounts is information reported to credit companies (CICs) and banks include these information in the credit appraisal and decision process for further  sanctioning of   loans to borrowers making

(d: As per RBI inputs; the inspection reports of the banks are disclosed the Right to Information (RTI) 2005, after the by under inspection report of the specific year is completed, supervisory process regarding the Section 11 and other as per the procedures laid down under relerant provisions of the RTI 2005. RBI, Act, Act,