Lok Sabha Question No. 1153 (UNSTARRED), answered on 2021-12-06
Subject: NPAs of Banks
Ministry: FINANCE
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-1153

ANSWERED ON- 06/12/2021

## NPAs OF BANKS

## 1153. SHRI V.KSREEKANDAN

Will the Minister of FINANCE be pleased t0 state: -

- whether it is a fact that the gross non~performing assets of commercial banks are expected to exceed Rs.10 lakh crore by March,2022;
- whether it is also true that this is due to slippages in retail micro, small and medium enterprise accounts, besides some restructured assets;
- if the details thereof; SO,
- (d) whether it is also true that various schemes announced by the Government in the wake of pandemic covid-19 did not help in retail micro, small and medium enterprise accounts; and
- (e) if the reasons therefor? SO,

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

(a) to (c): As per the Financial Stability Report (FSR) released by Reserve Bank of India (RBI) in July 2021\_ macro-stress tests  indicate that the gross nonperforming asset (GNPA) ratio of Scheduled Commercial Banks (SCBs), under the baseline scenario, increase from 7.48 per cent in March 2021 to 9.80 percent by March 2022 may

As per RBI inputs, the said GNPA ratio has been arrived at without factoring in the impact ofthe extent to which the benefit of such policy interventions from the Central Government and RBI is availed of by the eligible borrowers which; in turn, facilitates revival of accounts under stress:

and (e): A number of measures were taken to support and which in turn; helped the retail and MSME borrowers in the wake of the pandemic, including, inter the following: alia,

- RBI, vide circulars dated 27.3.2020 and 23.5.2020 on COVID-19 Regulatory Package, permitted all institutions tO grant a moratorium of six months on payment of all instalments of term loans and to defer the recovery of interest on working loans between 1.3.2020 and 31.8.2020. As per the Report on 'Trend and Progress of Banking in India 2019-20 published by RBI, as on 31.8.2020, 77.2 per cent of MSME borrowers and 43.7 per cent of individual borrowers of SCBs availed of the said moratorium: This helped such borrowers  in mitigating the burden of debt servicing brought about by disruptions on account of the pandemic and ensuring the continuity of viable businesses: lending capital have
- (ii) Under Emergency Credit Line Guarantee Scheme (ECLGS) which was backed by 100% guarantee of the Central Government; banks and non-banking financial companies (NBFCs) have sanctioned loans amounting to Rs 2.97 lakh crore as on 26.11.2021.
- (iv) The PM Street Vendor s AtmaNirbharNidhi (PM  SVANidhi) scheme launched by the Government tO help poor street vendors, impacted by the pandemic, to resume their livelihood activities has enabled 30.23 lakh street vendors to access credit amounting t0 Rs: 3,054 crore till 30.11.2021.
- (iii) As per inputs received from sector banks (PSBs), as on 26. 11.2021, resolution plan /restructuring has been implemented by them in 9.8 akh MSME accounts amounting to Rs: 58,524 crore; and in 8.5 lakh accounts of individual borrowers amounting to Rs. 60,662 crore, aS On 15.11.2021. public loan
- PSBs sanctioned Rs. 1,84,046 crore to 1.1 crore existing loan accounts under COVID-19 emergency relief schemes for their existing borrowers, including MSME borrowers and Self Help Groups, by providing additional loan facility without additional margin / security / or processing charge:

Further; government has launched nationwide Credit Outreach Programme on 16.10.2021, under which banks have been holding camps across the country to make loans available to eligible borrowers. As reported by banks, an aggregate  loan amount of Rs. 94,063 crore has been sanctioned up to 26.11.2021 under this. special