Lok Sabha Question No. 1301 (UNSTARRED), answered on 2025-12-08
Subject: Recovery of Non-Performing Assets (NPAs)
Ministry: FINANCE
Asked by: Shri G Lakshminarayana

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO- 1301

ANSWERED ON MONDAY, DECEMBER 8, 2025 / AGRAHAYANA 17, 1947 (SAKA)

## Recovery of Non-Performing Assets (NPAs)

1301. SHRI G LAKSHMINARAYANA:

Will the Minister of FINANCE be pleased to state:-

- (a) the total value of Non-Performing Assets (NPAs) in public and private sector banks during the last five years, including agriculture, industry, MSMEs, and corporate loans in the country, State-wise, sectorwise and year-wise;
- (b) the details of the number and value of accounts written off, under resolution, or referred to the Insolvency and Bankruptcy Code (IBC) and Debt Recovery Tribunals, year-wise;
- (c) the average time taken for recovery of NPAs and reasons for delays, if any, including procedural or legal bottlenecks;
- (d)  the  amount  of  funds  allocated  and  utilised  for  recapitalisation  of  banks  to  manage  NPAs  and improve credit flow;
- (e) the measures taken by the Government to prevent future NPAs in public and private sector banks in the country, including credit monitoring, lending norms and supervisory oversight; and
- (f) the details of the Government's plans to strengthen recovery mechanisms and improve bank asset quality?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a): The Gross Non-Performing Assets (NPAs) in Public Sector Banks (PSBs) and Private Sector Banks (PVBs) for the last five financial years are as under:

(Amounts in crore Rs.)

|           | Public Sector Banks   | Public Sector Banks             | Private Sector Banks   | Private Sector Banks            |
|-----------|-----------------------|---------------------------------|------------------------|---------------------------------|
| As on     | Gross NPA             | Gross NPA to Gross Advances (%) | Gross NPA              | Gross NPA to Gross Advances (%) |
| 31.3.2021 | 6,16,616              | 9.11                            | 2,02,266               | 4.94                            |
| 31.3.2022 | 5,40,958              | 7.28                            | 1,80,742               | 3.84                            |
| 31.3.2023 | 4,28,197              | 4.97                            | 1,25,212               | 2.29                            |
| 31.3.2024 | 3,39,541              | 3.47                            | 1,29,047               | 1.85                            |
| 31.3.2025 | 2,83,650              | 2.58                            | 1,32,646               | 1.75                            |

The Reserve Bank of India (RBI) has apprised that the state-wise information regarding gross NPAs is not maintained by it. However, year-wise and category-wise details of NPAs in PSBs and PVBs for domestic operations, for categories Agriculture and Allied Activities, Industry and Service (including Micro, Small, Medium Enterprises) and Retail loans, during the last five financial years are at Annex-1 .

(b): RBI has informed that the number of accounts of written-off loans is not maintained by it. However, the details of number (as reported by PSBs for three FYs) and amount of written-off loans (as reported by RBI), for PSBs and PVBs are at Annex-2.

As regards Insolvency and Bankruptcy Code (IBC), year wise details of cases yielding resolution plans and amount realisable by creditors, as provided by Insolvency and Bankruptcy Board of India (IBBI), are at Annex-3.

The  number  of  cases  referred  to  Debt  Recovery  Tribunal  (DRT),  amount  involved  and  amount recovered in those cases are at Annex-4.

(c): The average time taken for recovery of NPAs cannot be determined as it depends on a lot of factors like resolution methodology and recovery mechanisms adopted (SARFAESI/DRT /IBC/OTS, etc.).

As  regards  IBC,  the  1300  Corporate  Insolvency  Resolution  Process  (CIRPs),  which  have  yielded resolution plans by the end of September, 2025 took on average 603 days (after excluding the time excluded by  the  Adjudicating  Authority).  Similarly,  the  2896  CIRPs,  which  ended  up  in  orders  for liquidation, took on average 518 days for conclusion. Further, 1529 liquidation processes, which have closed by submission of final reports took on average 668 days for closure. Delays are mainly on account of litigation as the resolution process under the IBC is an adjudicatory process.

(d): PSBs have significantly improved their financial performance, turning profitable and strengthening their capital position. During FY 2020-21 and FY 2021-22, Government has infused capital of Rs 24,600 crore in PSBs to meet their capital requirement. PSBs now rely on market sources and internal accruals to meet their capital requirements and there has been no capital infusion by Government in PSBs since FY 2022-23.

(e) and (f): Comprehensive measures have been taken by the Government and RBI to prevent future NPAs from accretion as well as to reduce and recover NPA which includes, inter alia , the following:

- (i) Under the PSB Reforms Agenda, comprehensive and automated Early Warning Systems (EWS) were instituted in PSBs, with approximately 80 EWS triggers and use of third-party data for timebound  remedial  actions  in  the  borrowing  accounts  to  proactively  detect  stress  and  in  turn reducing slippage into NPAs.
- (ii) Moving from the 'Debtor in Possession' to a 'Creditor in Control' regime change in credit culture has been effected, with the Insolvency and Bankruptcy Code, 2016 (IBC) fundamentally changing the creditor-borrower relationship. Behavioral impact of IBC may be observed from the fact that as of March 2025, more than 30,000 applications having underlying default of Rs. 13.78 lakh crore have been settled at pre-admission stage itself.
- (iii) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) and the Recovery of Debt and Bankruptcy Act have been amended to make it more effective. Key amendments in SARFAESI, inter alia, Empowered RBI to audit and inspect Asset Reconstruction Companies (ARCs) and to impose penalties for non -compliance; mandated registration of all security interests with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI); created additional DRTs to speed up case disposal; enabled non-institutional investors to invest in Security Receipts.
- (iv) Pecuniary jurisdiction of DRTs was increased from Rs. 10 lakhs to Rs. 20 lakhs to enable the DRTs to focus on high value cases  resulting  in higher  recovery  for  the  banks  and  financial institutions.
- (v) Public Sector Banks have set-up specialized stressed assets management verticals and branches for effective monitoring and focused follow-up of NPA accounts, which facilitates quicker and improved resolution/ recoveries. Deployment of Business correspondents and adoption of Feeton-street model have also boosted the recovery trajectory of NPAs in banks.
- (vi) Prudential Framework for resolution of stressed assets was issued by RBI on 7.6.2019 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.
- (vii) Government and RBI have been working in coordination to strengthen the various recovery mechanisms available. These include filing of suits in civil courts or in Debt Recovery Tribunals, action  under  the  Securitisation  and  Reconstruction  of  Financial  Assets  and  Enforcement  of Security Interest Act, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, through negotiated settlements/compromise, and through sale of nonperforming assets. In addition to these to address the delays in completion of CIRPs various amendments have been proposed in IBC that are under legislative approval.

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Annex -1

## Lok Sabha Unstarred question no. 1301, regarding Recovery of Non-performing Assets

## Sector-wise details of NPAs in PSBs and PVBs, for domestic operations

(Amounts in crore Rs.)

| Sector                                      | As on     | Public Sector Banks   | Private Sector Banks   |
|---------------------------------------------|-----------|-----------------------|------------------------|
| and Allied Activities 31.3.2022 31.3.2023   | 31.3.2021 | 1,17,339              | 20,122                 |
| and Allied Activities 31.3.2022 31.3.2023   |           | 1,16,052              | 19,333                 |
| and Allied Activities 31.3.2022 31.3.2023   |           | 1,14,850              | 20,491                 |
| and Allied Activities 31.3.2022 31.3.2023   | 31.3.2024 | 1,08,985              | 21,795                 |
| and Allied Activities 31.3.2022 31.3.2023   | 31.3.2025 | 1,09,193              | 31,483                 |
| includingMSME 31.3.2022 31.3.2023 31.3.2024 | 31.3.2021 | 2,57,948              | 81,715                 |
| includingMSME 31.3.2022 31.3.2023 31.3.2024 |           | 2,10,517              | 73,997                 |
| includingMSME 31.3.2022 31.3.2023 31.3.2024 |           | 1,38,666              | 38,810                 |
| includingMSME 31.3.2022 31.3.2023 31.3.2024 |           | 96,026                | 32,372                 |
| includingMSME 31.3.2022 31.3.2023 31.3.2024 | 31.3.2025 | 65,365                | 25,669                 |
| including MSME 31.3.2023                    | 31.3.2021 | 1,41,819              | 56,897                 |
| including MSME 31.3.2023                    | 31.3.2022 | 1,25,505              | 46,461                 |
| including MSME 31.3.2023                    |           | 1,09,962              | 31,524                 |
| including MSME 31.3.2023                    | 31.3.2024 | 81,889                | 38,087                 |
| including MSME 31.3.2023                    | 31.3.2025 | 67,804                | 35,851                 |
| Retail Loans                                | 31.3.2021 | 35,887                | 26,439                 |
|                                             | 31.3.2022 | 35,191                | 22,880                 |
|                                             | 31.3.2023 | 33,208                | 24,315                 |
|                                             | 31.3.2024 | 31,491                | 30,307                 |
|                                             | 31.3.2025 | 30,671                | 36,536                 |

Source: RBI

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Lok Sabha Unstarred question no. 1301, regarding Recovery of Non-performing Assets

## Details of NPAs written-off by Public Sector Banks and Private Sector Banks

(Amounts in crore Rs.)

| Financial Year   | Public Sector Banks   | Public Sector Banks   | Private Sector Banks   |
|------------------|-----------------------|-----------------------|------------------------|
| Financial Year   | Number*               | Amount #              | Amount #               |
| 2020-21          | -                     | 1,31,894              | 66,863                 |
| 2021-22          | -                     | 1,15,536              | 53,098                 |
| 2022-23          | 17,20,431             | 1,27,238              | 83,248                 |
| 2023-24          | 16,33,882             | 1,14,622              | 47,403                 |
| 2024-25          | 17,60,080             | 91,260                | 58,430                 |

Source:  # RBI, *PSBs

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## Lok Sabha Unstarred question no. 1301, regarding Recovery of Non-performing Assets

Details of cases yielding resolution plans and amount realisable by creditors

(Amount in crore Rs.)

| Financial Year   |   Number of Resolutions | Total Admitted Claims   | Total Realisable Value   |
|------------------|-------------------------|-------------------------|--------------------------|
| 2020-21          |                     119 | 1,27,200                | 27,551                   |
| 2021-22          |                     142 | 1,95,383                | 46,369                   |
| 2022-23          |                     186 | 1,53,567                | 55,361                   |
| 2023-24          |                     263 | 1,68,927                | 46,176                   |
| 2024-25          |                     259 | 1,62,746                | 55,821                   |

Source: IBBI

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Lok Sabha Unstarred question no. 1301, regarding Recovery of Non-performing Assets SCBs data on 'Reduction in NPA due to write-offs' and 'number and value of

## cases referred to DRTs

(Amounts in crore Rs.)

|                                           | FY 2020-21   | FY 2021-22   | FY 2022-23   | FY 2023-24   | FY 2024-25   |
|-------------------------------------------|--------------|--------------|--------------|--------------|--------------|
| Reduction in NPAs - due to write-offs     | 2,02,781     | 1,74,966     | 2,16,324     | 1,70,262     | 1,57,029     |
| No. of cases referred to DRTs             | 28,182       | 30,651       | 56,171       | 30,806       | 34,430       |
| Amount involved in cases referred to DRTs | 2,25,361     | 68,956       | 4,02,629     | 79,414       | 1,29,516     |
| Amount recovered through DRTs*            | 8,113        | 12,035       | 39,777       | 13,527       | 12,363       |

Source: RBI

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