Lok Sabha Question No. 1704 (UNSTARRED), answered on 2023-02-13
Subject: Bank NPAs
Ministry: FINANCE
Asked by: Badruddin Ajmal

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 1704

To be answered on the February 13, 2023/Magha 24, 1944 (Saka)

## Bank NPAs

1704. SHRI M. BADRUDDIN AJMAL:

Will the Minister of FINANCE be pleased to state:

- (a) the amount of loans provided by the Public Sector Banks (PSBs) to individuals, industries, corporate houses during each of the last three years and the current year, bank-wise;
- (b) the  details  of  outstanding  loans/Non-Performing  Assets  (NPAs)  and  its  share  and percentage during the said period, bank-wise;
- (c) the progress of the recovery of such loans during the said period;
- (d) whether the banks have been permitted to dilute and decentralize the process of Corporate Debt Restructuring (CDR) at branch level to reduce the NPA; and
- (e) if  so,  the  details  thereof  and  the  other  measures  taken/proposed  to  be  taken  by  the Government to reduce the NPA of banks?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a) to (c): The outstanding of gross advances of Public Sector Banks (PSBs), including loans to individuals,  industries,  corporates,  for  last  three  years  and  current  year  as  on  30.9.2022  are  at Annexure I.

The details of Gross Non-performing asset (GNPA) ratio of PSBs for last three years and current year as on 30.9.2022 are at Annexure II.

As per Reserve Bank of India (RBI), PSBs have recovered an amount of Rs 2,81,471 crores in last three financial years.

(d) and (e): Corporate Debt Restructuring (CDR) scheme, introduced in August 2001, has since been  withdrawn  by  RBI  in  June  2019  while  issuing  circular  on  'Prudential  Framework  for Resolution of Stressed Assets', which provides for early recognition and resolution of stressed assets within a time bound manner.

Comprehensive steps that have been taken by the Government and RBI to prevent and reduce NPAs, 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.
- (2) Further, a pre-packaged insolvency resolution process (PPIRP) was operationalised under IBC to provide an efficient alternative insolvency resolution process for corporate persons classified as micro, small and medium enterprises (MSME), ensuring quicker, cost-effective and value maximising outcomes for all the stakeholders, in a manner which is least disruptive to the continuity of their businesses and also preserving employment.
- (3) Prudential Framework for Resolution of Stressed Assets was issued by RBI in 2019 to provide a framework for early recognition, reporting and time bound resolution of stressed assets, with a build-in incentive to lenders for early adoption of a resolution plan.
- (4) Central Repository of Information on Large Credits (CRILC)  collects, stores and disseminates 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.
- (5) 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 timebound remedial actions in the borrowing accounts.
- (6) PSBs  have  also  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.
- (7) The  Securitisation  and  Reconstruction  of  Financial  Assets  and  Enforcement  of  Security Interest Act, 2002 has been amended to make it more effective.
- (8) 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.
- (9) Wilful  defaulters  and  companies  with  wilful  defaulters  as  promoters/directors  have  been debarred from accessing capital markets to raise funds.

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Amount in INR Crores

| Gross Advances (Global) including loans to individuals, industries, corporate houses Outstanding as on   | Gross Advances (Global) including loans to individuals, industries, corporate houses Outstanding as on   | Gross Advances (Global) including loans to individuals, industries, corporate houses Outstanding as on   | Gross Advances (Global) including loans to individuals, industries, corporate houses Outstanding as on   | Gross Advances (Global) including loans to individuals, industries, corporate houses Outstanding as on   |
|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|                                                                                                          | 31-03-2020                                                                                               | 31-03-2021                                                                                               | 31-03-2022                                                                                               | 30-09-2022                                                                                               |
| Bank of Baroda                                                                                           | 7,38,096                                                                                                 | 7,51,590                                                                                                 | 8,18,121                                                                                                 | 8,73,496                                                                                                 |
| Bank of India                                                                                            | 4,16,521                                                                                                 | 4,10,436                                                                                                 | 4,57,014                                                                                                 | 4,93,814                                                                                                 |
| Bank of Maharashtra                                                                                      | 94,889                                                                                                   | 1,07,654                                                                                                 | 1,35,240                                                                                                 | 1,48,216                                                                                                 |
| Canara Bank                                                                                              | 6,60,717                                                                                                 | 6,75,155                                                                                                 | 7,41,147                                                                                                 | 8,24,147                                                                                                 |
| Central Bank of India                                                                                    | 1,72,244                                                                                                 | 1,76,913                                                                                                 | 1,89,712                                                                                                 | 1,97,022                                                                                                 |
| Indian Bank                                                                                              | 3,68,663                                                                                                 | 3,90,317                                                                                                 | 4,15,625                                                                                                 | 4,37,941                                                                                                 |
| Indian Overseas Bank                                                                                     | 1,34,771                                                                                                 | 1,39,597                                                                                                 | 1,55,801                                                                                                 | 1,72,713                                                                                                 |
| Punjab National Bank                                                                                     | 7,62,721                                                                                                 | 7,39,407                                                                                                 | 7,85,104                                                                                                 | 8,30,212                                                                                                 |
| Punjab & Sind Bank                                                                                       | 62,564                                                                                                   | 67,811                                                                                                   | 70,387                                                                                                   | 73,739                                                                                                   |
| State Bank of India                                                                                      | 24,22,845                                                                                                | 25,39,393                                                                                                | 28,18,671                                                                                                | 30,35,071                                                                                                |
| UCO Bank                                                                                                 | 1,14,961                                                                                                 | 1,18,405                                                                                                 | 1,29,777                                                                                                 | 1,42,156                                                                                                 |
| Union Bank of India                                                                                      | 6,66,117                                                                                                 | 6,53,684                                                                                                 | 7,16,408                                                                                                 | 7,73,690                                                                                                 |

Source: RBI

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Annexure II

| GNPA ratio (%) of PSBs as on   | GNPA ratio (%) of PSBs as on   | GNPA ratio (%) of PSBs as on   | GNPA ratio (%) of PSBs as on   | GNPA ratio (%) of PSBs as on   |
|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|                                | 31-03-2020                     | 31-03-2021                     | 31-03-2022                     | 30-09-2022                     |
| Bank of Baroda                 | 9.40                           | 8.87                           | 6.61                           | 5.31                           |
| Bank of India                  | 14.78                          | 13.77                          | 9.98                           | 8.51                           |
| Bank of Maharashtra            | 12.81                          | 7.23                           | 3.94                           | 3.40                           |
| Canara Bank                    | 9.25                           | 8.93                           | 7.34                           | 6.37                           |
| Central Bank of India          | 18.92                          | 16.55                          | 14.84                          | 9.67                           |
| Indian Bank                    | 11.39                          | 9.85                           | 8.47                           | 7.30                           |
| Indian Overseas Bank           | 14.78                          | 11.69                          | 9.82                           | 8.53                           |
| Punjab National Bank           | 13.79                          | 14.12                          | 11.78                          | 10.48                          |
| Punjab & Sind Bank             | 14.18                          | 13.76                          | 12.17                          | 9.67                           |
| State Bank of India            | 6.15                           | 4.98                           | 3.97                           | 3.52                           |
| UCO Bank                       | 16.77                          | 9.59                           | 7.89                           | 6.58                           |
| Union Bank of India            | 14.59                          | 13.74                          | 11.11                          | 8.45                           |

Source: RBI