Lok Sabha Question No. 1013 (UNSTARRED), answered on 2015-12-04
Subject: Indradhanush Plan for PSBs
Ministry: FINANCE
Asked by: SUSHMITA DEV, RAJESH RANJAN  (PAPPU  YADAV), Dr. BHOLA SINGH, KINJARAPU RAM MOHAN NAIDU, KAUSHALENDRA KUMAR, A. ARUNMOZHITHEVAN, HARISH DWIVEDI, RAYAPATI SAMBASIVA RAO, R. VANAROJA, V. SATHYABAMA, KURUPPASSERY VARKEY THOMAS, MALLIKARJUN  KHARGE, SANJAY SHAMRAO DHOTRE, SANGANNA AMARAPPA KARADI, DUSHYANT CHAUTALA

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

## LOK SABHA

## UNSTARRED QUESTION NO 1013 TO BE ANSWERED ON THE 4 th DECEMBER, 2015 / AGRAHAYANA 13, 1937 (SAKA)

## QUESTION INDRADHANUSH PLAN FOR PSBs.

1013: KUMARI SUSHMITA DEV                                             SHRIMATI VANAROJA R. SHRI RAJESH RANJAN                                                          SHRIMATI V. SATHYA BAMA DR. BHOLA SINGH                                                                 PROF. K. V. THOMAS SHRI RAM MOHAN NAIDU KINJARAPU                               SHRI MALLIKARJUN KHARGE SHRI KAUSHALENDRA KUMAR                                            SHRI SANJAY DHOTRE SHRI A. ARUNMOZHITHEVAN                                              SHRI SANGANNA AMARAPPA SHRI HARISH CHANDRA ALIAS HARISH DWIVEDI             SHRI DUSHYANT CHAUTALA SHRI RAYAPATI SAMBASIVA RAO

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  has  announced  a  plan  called  'Indradhanush'  to  improve  the efficiency and functioning of all Public Sector Banks (PSBs) with a view to reduce their Non-Performing Assets (NPAs) and if so, the salient features thereof;
- (b)  whether chronic and complex problems in repayment of loans can be attributed to certain flaws in the banking system resulting in piling up of NPAs day by day and if so, the details thereof;
- (c) the details and the status of total NPAs along with the loan amount recovered/ written off during each of the last three year and the current year, bank and State-wise;
- (d)  the  number  of  cases  in  which  Strategic  Debt  Restructuring  Scheme  Securitisation  and Reconstruction  of  Financial  Assets  and  Enforcement  of  Security  Interest  (SARFAESI) have been initiated by the banks of revitalising distressed assets; and
- (e)  the other remedial measures taken/ being taken by the Government to reduce NPAs of PSBs?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) & (b): The Government has announced a plan called 'Indradhanush' to improve the efficiency and functioning of all Public Sector Banks (PSBs) including a view to reduce their Non-Performing Assets (NPAs). Due to several factors, projects are increasingly stalled/stressed thus leading to NPA burden on banks.  Major reasons affecting these projects  were  delay  in  obtaining  permits  /  approvals  from  various  governmental  and regulatory  agencies,  and  land  acquisition,  delaying  Commercial  Operation  Date (COD);  lack  of  availability  of  fuel,  both  coal  and  gas;  cancellation  of  coal  blocks;

closure  of  Iron  Ore  mines  affecting  project  viability;  lack  of  transmission  capacity; limited off-take of power by Discoms given their reducing purchasing capacity; funding gap faced by limited capacity of promoters to raise additional equity and reluctance on part of banks to increase their exposure given the high leverage ratio; inability of banks to restructure projects even when found viable due to regulatory constraints.

(c): The details are at Annex.

(d):  The  number of cases in which Strategic Debt Restructuring has been done and cases where action under Securitisation and Reconstruction of Financial Assets and Enforcement  of  Security  Interest  (SARFAESI)  has  been  initiated  by  the  banks  of revitalising distressed assets is as under:

|              |   Strategic Debt Restructuring Scheme |   SARFAESI |
|--------------|---------------------------------------|------------|
| No. of Cases |                                    66 |     317181 |

(e):  The  Government  has  taken  various  measures  which  inter  alia  include  giving  a one-time financial assistance to revive 'physically incomplete and languishing' National Highway (NH) projects, Rs 3.27 lakh crore (from various Financial Institutions including Rs 1.95 lakh crore from banks) debt-recast and reform package to revive loss-making state  discoms  utilities  and  customs  duty  on  steel  reduced  to  help  reduce  adverse impact on domestic steel producers from dumping.

RBI  as  the regulator has  issued  guidelines  which  inter  alia provide  for early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders, Framework for Revitalizing Distressed Assets in the Economy - Review of the Guidelines on Joint Lenders' Forum (JLF) and Corrective Action Plan (CAP).

************

## ANNEX TO QUESTION NO 1013

| Sr. No.   | Bank Name                      | Gross NPA   | Gross NPA   | Gross NPA   | Gross NPA   | Write Off incl. compromise   | Write Off incl. compromise   | Write Off incl. compromise   | Write Off incl. compromise   | (Rs. in Crore) Total NPA Reduction   | (Rs. in Crore) Total NPA Reduction   | (Rs. in Crore) Total NPA Reduction   | (Rs. in Crore) Total NPA Reduction   |
|-----------|--------------------------------|-------------|-------------|-------------|-------------|------------------------------|------------------------------|------------------------------|------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| Sr. No.   | Bank Name                      | 2012        | 2013        | 2014        | 2015        | 2012                         | 2013                         | 2014                         | 2015                         | 2012                                 | 2013                                 | 2014                                 | 2015                                 |
| 1         | Allahabad Bank                 | 2,059       | 5,137       | 8,068       | 8,358       | 1,001                        | 1,352                        | 782                          | 2,109                        | 1,821                                | 2,814                                | 3,090                                | 4,736                                |
| 2         | Andhra Bank                    | 1,798       | 3,714       | 5,858       | 6,877       | 169                          | 334                          | 263                          | 1,124                        | 485                                  | 825                                  | 689                                  | 2,405                                |
| 3         | Bank of Baroda                 | 4,465       | 7,983       | 11,876      | 16,261      | 1,215                        | 2,356                        | 964                          | 1,564                        | 2,131                                | 3,326                                | 2,941                                | 4,130                                |
| 4         | Bank of India                  | 5,894       | 8,765       | 11,869      | 22,193      | 2,415                        | 2,415                        | 1,767                        | 801                          | 4,107                                | 4,419                                | 5,708                                | 6,327                                |
| 5         | Bank of Maharashtra            | 1,297       | 1,138       | 2,860       | 6,402       | 395                          | 663                          | 401                          | 264                          | 753                                  | 967                                  | 867                                  | 1,091                                |
| 6         | Bharatiya Mahila Bank Ltd.     | 0           | 0           | 0           | 0           | 0                            | 0                            | 0                            | 0                            | 0                                    | 0                                    | 0                                    | 0                                    |
| 7         | Canara Bank                    | 4,032       | 6,260       | 7,570       | 13,040      | 1,460                        | 1,535                        | 1,591                        | 1,472                        | 3,695                                | 3,591                                | 7,134                                | 5,400                                |
| 8         | Central Bank of India          | 7,273       | 8,456       | 11,500      | 11,873      | 629                          | 1,061                        | 1,995                        | 1,386                        | 1,970                                | 3,942                                | 4,525                                | 6,206                                |
| 9         | Corporation Bank               | 1,274       | 2,048       | 4,737       | 7,107       | 565                          | 709                          | 463                          | 779                          | 719                                  | 1,023                                | 867                                  | 1,369                                |
| 10        | Dena Bank                      | 957         | 1,452       | 2,616       | 4,393       | 194                          | 237                          | 479                          | 515                          | 608                                  | 624                                  | 1,256                                | 1,897                                |
| 11        | IDBI Bank Limited              | 4,551       | 6,450       | 9,960       | 12,685      | 319                          | 383                          | 1,393                        | 1,609                        | 794                                  | 841                                  | 2,196                                | 3,376                                |
| 12        | Indian Bank                    | 1,851       | 3,565       | 4,562       | 5,670       | 506                          | 520                          | 628                          | 550                          | 769                                  | 1,178                                | 1,836                                | 2,231                                |
| 13        | Indian Overseas Bank           | 3,920       | 6,608       | 9,020       | 14,922      | 1,166                        | 1,642                        | 1,474                        | 3,131                        | 2,354                                | 2,913                                | 4,490                                | 6,114                                |
| 14        | Oriental Bank of Commerce      | 3,580       | 4,184       | 5,618       | 7,666       | 933                          | 1,416                        | 1,252                        | 925                          | 2,238                                | 2,610                                | 2,593                                | 2,466                                |
| 15        | Punjab & Sind Bank             | 763         | 1,537       | 2,554       | 3,082       | 39                           | 50                           | 204                          | 263                          | 212                                  | 320                                  | 603                                  | 714                                  |
| 16        | Punjab National Bank           | 8,720       | 13,466      | 18,880      | 25,695      | 126                          | 997                          | 1,947                        | 6,587                        | 2,331                                | 3,901                                | 5,396                                | 9,845                                |
| 17        | Syndicate Bank                 | 3,183       | 2,979       | 4,611       | 6,442       | 891                          | 1,297                        | 1,025                        | 1,527                        | 2,573                                | 2,347                                | 2,062                                | 3,669                                |
| 18        | UCO Bank                       | 4,086       | 7,130       | 6,621       | 10,265      | 391                          | 617                          | 1,423                        | 1,401                        | 1,465                                | 2,118                                | 4,470                                | 3,908                                |
| 19        | Union Bank of India            | 5,450       | 6,314       | 9,564       | 13,031      | 938                          | 1,129                        | 913                          | 931                          | 1,933                                | 3,110                                | 2,229                                | 2,199                                |
| 20        | United Bank of India           | 2,176       | 2,964       | 7,118       | 6,553       | 233                          | 1,094                        | 481                          | 761                          | 1,144                                | 1,697                                | 3,853                                | 4,652                                |
| 21        | Vijaya Bank                    | 1,718       | 1,533       | 1,986       | 2,443       | 214                          | 543                          | 296                          | 791                          | 1,598                                | 1,787                                | 1,721                                | 2,370                                |
| 22        | State Bank of Bikaner & Jaipur | 1,651       | 2,119       | 2,733       | 2,945       | 275                          | 463                          | 399                          | 363                          | 756                                  | 1,160                                | 1,510                                | 1,475                                |
| 23        | State Bank of Hyderabad        | 2,007       | 3,186       | 5,824       | 4,985       | 265                          | 343                          | 31                           | 355                          | 1,362                                | 1,638                                | 2,184                                | 3,889                                |
| 24        | State Bank of India            | 39,676      | 51,189      | 61,605      | 56,725      | 744                          | 5,594                        | 13,177                       | 21,313                       | 10,362                               | 20,480                               | 31,100                               | 34,324                               |
| 25        | State Bank of Indore           | 0           | 0           | 0           | 0           | 0                            | 0                            | 0                            | 0                            | 0                                    | 0                                    | 0                                    | 0                                    |
| 26        | State Bank of Mysore           | 1,503       | 2,081       | 2,819       | 2,136       | 165                          | 275                          | 403                          | 740                          | 672                                  | 1,080                                | 1,359                                | 2,578                                |
| 27        | State Bank of Patiala          | 1,888       | 2,453       | 3,758       | 4,360       | 120                          | 28                           | 463                          | 755                          | 1,061                                | 1,469                                | 2,759                                | 4,107                                |
| 28        | State Bank of Travancore       | 1,489       | 1,750       | 3,077       | 2,357       | 182                          | 176                          | 196                          | 526                          | 2,087                                | 2,145                                | 3,605                                | 5,195                                |
|           | PUBLIC SECTOR BANKS            | 1,17,262    | 1,64,462    | 2,27,264    | 2,78,468    | 15,551                       | 27,231                       | 34,409                       | 52,542                       | 49,999                               | 72,324                               | 1,01,042                             | 1,26,671                             |

Source:RBI- Off-site balance sheet returns ( annual returns ), as reported by banks, global operations

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