Lok Sabha Question No. 2311 (UNSTARRED), answered on 2022-08-01
Subject: Bad Loans
Ministry: FINANCE
Asked by: Shashi Tharoor

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

## LOK SABHA

## UN-STARRED QUESTION NO. 2311

TO BE ANSWERED ON 1st AUGUST, 2022/ 10 SRAVANA, 1944 (SAKA)

## 'BAD LOANS'

## 2311: DR. SHASHI THAROOR:

Will the Minister of FINANCE be pleased to state:

(a) whether the Ministry has recorded the total amount of bad loans extended to MSMEs over the last three years in the country;

(b) if so, the details thereof, quarter-wise and State-wise;

(c)  whether the Ministry has recorded the active total amount of bad loans which have been extended by Scheduled Commercial Banks, bank-wise;

(d)  if so, the details thereof and if not, the reasons therefor;

(e)  whether  the  Ministry  has  taken  cognizance  of  the  rising  bad  loans  over  the  past  few  years  and implemented necessary corrective measures; and

(f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

(a) to (b): As per inputs received from Reserve Bank of India (RBI), the quarter-wise data on MSMEs gross Non-Performing Assets (NPAs) of Scheduled Commercial Banks (SCBs) from 30.6.2019 to 31.3.2022 is at Annexure I . Further, RBI has informed that it does not collect / maintain State-wise data, in this regard.

(c) to (d): Bank-wise details of gross NPAs in SCBs during the last three financial years, are at Annexure II.

(e)  to  (f):  In  this  regard,  comprehensive  steps  have  been  taken  by  the  Government  for  effective  action against and to recover the default amount from defaulters. The steps taken include, inter alia , the following -

- i. 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.
- ii. 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  not  provide  asset  details,  and  for  the  lender  to  get  possession  of  mortgaged property within 30 days.
- iii. 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.
- iv. 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.
- v. 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.
- vi. 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 preand post-sanction follow-up roles for clean and effective monitoring, and engaging specialised monitoring agencies for monitoring of large-value accounts.
- vii. The Fugitive Economic Offenders Act, 2018 has been enacted to provide for attachment of property of a  fugitive  economic  offender,  confiscation  of  such  offender's  property  and  disentitlement  of  the offender from defending any civil claim.
- viii. 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.

*****

| Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   | Annexure I referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans   |
|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         | Quarterly data on MSMEGross NPAs of Scheduled Commercial Banks                         |
|                                                                                        |                                                                                        |                                                                                        |                                                                                        |                                                                                        |                                                                                        |                                                                                        |                                                                                        |                                                                                        | Amount in Rupees Crore                                                                 |                                                                                        |                                                                                        |                                                                                        |
|                                                                                        | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     | Gross NPAs (As on)                                                                     |
|                                                                                        | 30-06- 2019                                                                            | 30-09- 2019                                                                            | 31-12- 2019                                                                            | 31-03- 2020                                                                            | 30-06- 2020                                                                            | 30-09- 2020                                                                            | 31-12- 2020                                                                            | 31-03- 2021                                                                            | 30-06- 2021                                                                            | 30-09- 2021                                                                            | 31-12- 2021                                                                            | 31-03- 2022*                                                                           |
| Total for SCBs                                                                         | 164461                                                                                 | 147260                                                                                 | 154570                                                                                 | 162310                                                                                 | 154360                                                                                 | 145673                                                                                 | 136677                                                                                 | 182114                                                                                 | 184560                                                                                 | 165732                                                                                 | 159489                                                                                 | 154860                                                                                 |

Source: Reserve Bank of India

Provisional data as on 31.3.2022

## Annexure II referred to in Lok Sabha Unstarred question no. 2311, regarding Bad Loans

## Details of gross Non-Performing Assets of Scheduled Commercial Banks

Amount in Rs. crore

| Bank                                                 | As on 31.3.2020   | As on 31.3.2021   | As on 31.3.2022*   |
|------------------------------------------------------|-------------------|-------------------|--------------------|
| AB Bank Limited                                      | 0                 | 0                 | --                 |
| Abu Dhabi Commercial Bank PJSC                       | 0                 | 0                 | --                 |
| American Express Banking Corporation                 | 80                | 253               | 227                |
| AU Small Finance Bank Limited                        | 458               | 1,503             | 924                |
| Australia and New Zealand Banking Group Limited      | 25                | 25                | 25                 |
| Axis Bank Limited                                    | 26,604            | 22,682            | 18,566             |
| Bandhan Bank Limited                                 | 993               | 5,758             | 6,380              |
| Bank of America, National Association                | 0                 | 0                 | --                 |
| Bank of Bahrain and Kuwait B.S.C.                    | 79                | 14                | 17                 |
| Bank of Baroda (BoB)                                 | 69,381            | 66,671            | 54,059             |
| Bank of Ceylon                                       | 20                | 33                | 54                 |
| Bank of India                                        | 61,550            | 56,535            | 45,605             |
| Bank of Maharashtra                                  | 12,152            | 7,780             | 5,327              |
| Bank of Nova Scotia                                  | 68                | 64                | 64                 |
| Barclays Bank PLC                                    | 339               | 268               | 111                |
| BNP Paribas                                          | 7                 | 7                 | 6                  |
| Canara Bank                                          | 37,041            | 60,288            | 54,436             |
| Syndicate Bank                                       | 24,086            | Merged with       | Canara Bank        |
| Capital Small Finance Bank Limited                   | 59                | 78                | 117                |
| Catholic Syrian Bank Limited                         | 409               | 393               | 290                |
| Central Bank of India                                | 32,589            | 29,277            | 28,156             |
| City Union Bank Limited                              | 1,413             | 1,893             | 1,933              |
| Cooperatieve Rabobank U.A.                           | 170               | 372               | 150                |
| Credit Agricole Corporate and Investment Bank        |                   |                   | 3                  |
|                                                      | 3                 | 3                 |                    |
| Credit Suisse AG CTBC Bank Company Limited           | 0 3               | 0 2               | -- 1               |
| DBS Bank India Limited (DBSIL)                       | 508               |                   |                    |
|                                                      |                   | 488               | 4,534              |
| Lakshmi Vilas Bank Limited                           | 4,233             | 4,845             | Merged with DBSIL  |
| Deutsche Bank AG DCB Bank Limited                    | 1,510             | 1,457             | 2,732 1,290        |
|                                                      | 632               | 1,083             |                    |
| Doha Bank Q.P.S.C                                    | 9                 | 27                | 27                 |
| Equitas Small Finance Bank Limited                   | 417               | 643               | 837                |
| ESAF Small Finance Bank Limited Federal Bank Limited | 101               | 564 4,602         | 1,024 4,137        |
| Fincare Small Finance Bank Limited                   | 3,531 45          | 354               | 573                |
| Firstrand Bank Limited                               | 28                | 28                | --                 |
| HDFC Bank Limited                                    | 12,559            | 14,999            | 16,101             |
| Hongkong and Shanghai Banking Corporation Limited    | 669               | 913               | 644                |
| ICICI Bank Limited                                   | 40,829            | 40,841            | 33,295             |
| IDBI Bank Limited                                    | 47,272            | 36,212            | 34,115             |
| IDFC First Bank Limited                              | 2,280             | 4,303             | 4,469              |
| Indian Bank                                          | 14,151            | 38,455            | 35,214             |
| Allahabad Bank                                       | 27,847            | Merged with       | Indian Bank        |
| IndusInd Bank Limited                                | 5,147             | 5,795             | 5,517              |

| Bank                                                | As on 31.3.2020   | As on 31.3.2021   | As on 31.3.2022*   |
|-----------------------------------------------------|-------------------|-------------------|--------------------|
| Industrial and Commercial Bank of China             | 35                | 0                 | --                 |
| Jammu and Kashmir Bank Limited                      | 7,672             | 6,955             | 6,521              |
| Jana Small Finance Bank Limited                     | 321               | 858               | 757                |
| JPMorgan Chase Bank National Association            | 0                 | 0                 | --                 |
| JSC VTB Bank                                        | 0                 | 0                 | --                 |
| Karnataka Bank Limited                              | 2,800             | 2,588             | 2,251              |
| Karur Vysya Bank Limited                            | 4,213             | 4,143             | 3,431              |
| KEB Hana Bank                                       | 53                | 40                | 40                 |
| Kotak Mahindra Bank Limited                         | 5,027             | 7,426             | 6,470              |
| Mizuho Bank Limited                                 | 6                 | 6                 | 6                  |
| MUFG Bank Limited                                   | 0                 | 0                 | --                 |
| Nainital Bank Limited                               | 536               | 651               | 521                |
| North East Small Finance Bank Limited               | 26                | 192               | 190                |
| PT Bank Maybank Indonesia TBK                       | 18                | 18                | --                 |
| Punjab and Sind Bank                                | 8,875             | 9,334             | 8,565              |
| Punjab National Bank (PNB)                          | 73,479            | 1,04,423          | 92,448             |
| Oriental Bank of Commerce                           | 21,751            | with PNB          | with PNB           |
| United Bank of India Qatar National Bank (Q.P.S.C.) | 9,935 0           | Merged 50         | 53                 |
| RBL Bank Limited                                    | 2,137             | 2,602             | 2,728              |
| Sberbank                                            | 92                | 92                | 41                 |
| SBM Bank (India) Limited                            | 116               | 88                | 93                 |
| Shinhan Bank                                        | 100               | 128               | 154                |
| Shivalik Small Finance Bank Limited                 | --                | --                | 33                 |
| Societe Generale                                    | 79                | 79                | 79                 |
| Sonali Bank                                         | 5                 | 4                 | 4                  |
| South Indian Bank Limited                           | 3,262             | 4,143             | 3,648              |
| Standard Chartered Bank                             | 5,151             | 4,674             | 3,866              |
| State Bank of India (SBI)                           | 1,49,092          | 1,26,389          | 1,12,023           |
| Suryoday Small Finance Bank Limited                 | 101               | 394               | 598                |
| Tamilnad Mercantile Bank Limited                    | 1,021             | 1,085             | 571                |
| The Dhanalakshmi Bank Limited                       | 401               | 657               | 534                |
| The Royal Bank of Scotland PLC                      | --                | --                | --                 |
| UCO Bank                                            | 19,282            | 11,352            | 10,237             |
| Ujjivan Small Finance Bank Limited                  | 137               | 1,071             | 1,284              |
| Union Bank of India (UBI)                           | 49,085            | 89,788            | 79,587             |
| Andhra Bank                                         | 28,709            |                   |                    |
| Corporation Bank                                    | 19,399            | Merged with UBI   | Merged with UBI    |
| United Overseas Bank Limited                        | 75                | 75                | 75                 |
| Utkarsh Small Finance Bank Limited                  | 45                | 315               | 648                |
| Woori Bank                                          | 0                 | 0                 | --                 |

Source: Reserve Bank of India

* Provisional Data as on 31.3.2022