Lok Sabha Question No. 1023 (UNSTARRED), answered on 2016-07-22
Subject: Action against Loan Defaulters
Ministry: FINANCE
Asked by: MALLIKARJUN  KHARGE

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

## LOK SABHA UNSTARRED QUSTION NO. 1023

## TO BE ANSWERED ON THE 22 ND

## JULY, 2016 / ASHADHA 31, 1938 (SAKA)

## ACTION AGAINST LOAN DEFAULTERS

## QUESTION

1023. SHRI MALLIKARJUN KHARGE

Will the Minister of FINANCE be pleased to state:

- (a) whether the Non Performing Assets (NPAs) of the public and private sector banks (PSBs) are on the rise, if so, the details thereof during each of the last three years and the current year, bank-wise;
- (b) the details of the NPAs recovered and written off by PSBs during the said period, bank-wise;
- (c) whether the Government has advised PSBs to take strict action against loan defaulters, if so, the details thereof; and
- (d) the remedial measures taken/being taken by the Government/Reserve Bank of India (RBI) to control NPAs?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a) Yes Sir, the details of NPAs of Public Sector Banks (PSBs) and Private Banks for the last three years and the current year is as per Annex I .
- (b) The details of the NPAs recovered and written off by PSBs is as per Annex-II .
- (c) The Reserve Bank of India (RBI) has issued guidelines updated on July 1, 2015, on willful defaulters to dis-incentivize borrowers who have money and do not pay or have diverted the funds or siphoned off funds or removed assets given as security, indicting action that includes; (i) restricting additional facilities to such defaulters from banks and financial institutions, (ii) barring of such borrowers from institutional finance, (iii) criminal action, (iv) removal of directors of such companies from boards and (v) change in management.

Under the existing guidelines there is a scope to initiate criminal action against wilful defaulters depending upon the facts and circumstances of the case under the provisions of Sections 403 and 415 of the Indian Penal Code (IPC) 1860.

- (d) the government has taken specific measures to address issues in sectors such as Infrastructure (Power, Roads etc.), Steel and Textiles where incidence of NPAs is high. The government has also approved establishment of six (6) new Debt Recovery Tribunals (DRTs), to speed up the recovery of bad loans of the banking sector, in addition to existing thirty three. Reserve Bank of India (RBI) has also undertaken steps which include (i) Formation of Joint Lenders' Forum (JLF) for revitalizing stressed assets in the system, (ii) Flexible Structuring for long term project loans to Infrastructure and Core industries, and (iii) Strategic Debt Restructuring (SDR) scheme (iv) Scheme for Sustainable Structuring of Stressed Assets (S4A).The Government has recently issued advisory to banks to take action against guarantors in event of default by borrower under relevant sections of SARFAESI Act, Indian Contract Act & RDDB&FI Act, since in the event of default, the liability of the guarantor is co-extensive with the borrower.

******

| Annex-I                                                                                                   | Annex-I                                                                                                   | Annex-I                                                                                                   | Annex-I                                                                                                   | Annex-I                                                                                                   | Annex-I                                                                                                   |
|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
| GROSS NPAs OF PUBLIC AND PRIVATE SECTOR BANKS DURING THE LAST THREE YEARS AND CURRENT YEAR (Rs. In Crore) | GROSS NPAs OF PUBLIC AND PRIVATE SECTOR BANKS DURING THE LAST THREE YEARS AND CURRENT YEAR (Rs. In Crore) | GROSS NPAs OF PUBLIC AND PRIVATE SECTOR BANKS DURING THE LAST THREE YEARS AND CURRENT YEAR (Rs. In Crore) | GROSS NPAs OF PUBLIC AND PRIVATE SECTOR BANKS DURING THE LAST THREE YEARS AND CURRENT YEAR (Rs. In Crore) | GROSS NPAs OF PUBLIC AND PRIVATE SECTOR BANKS DURING THE LAST THREE YEARS AND CURRENT YEAR (Rs. In Crore) | GROSS NPAs OF PUBLIC AND PRIVATE SECTOR BANKS DURING THE LAST THREE YEARS AND CURRENT YEAR (Rs. In Crore) |
| SR. NO.                                                                                                   | BANKS                                                                                                     | GROSS NPAs                                                                                                | GROSS NPAs                                                                                                | GROSS NPAs                                                                                                | GROSS NPAs                                                                                                |
|                                                                                                           |                                                                                                           | Mar-13                                                                                                    | Mar-14                                                                                                    | Mar-15                                                                                                    | Mar-16                                                                                                    |
| 1                                                                                                         | Allahabad Bank                                                                                            | 4,962                                                                                                     | 7,961                                                                                                     | 8,274                                                                                                     | 12,780                                                                                                    |
| 2                                                                                                         | Andhra Bank                                                                                               | 3,714                                                                                                     | 5,858                                                                                                     | 6,877                                                                                                     | 10,647                                                                                                    |
| 3                                                                                                         | Bank of Baroda                                                                                            | 6,551                                                                                                     | 9,894                                                                                                     | 13,921                                                                                                    | 33,730                                                                                                    |
| 4                                                                                                         | Bank of India                                                                                             | 7,152                                                                                                     | 10,274                                                                                                    | 20,245                                                                                                    | 40,369                                                                                                    |
| 5                                                                                                         | Bank of Maharashtra                                                                                       | 1,138                                                                                                     | 2,860                                                                                                     | 6,402                                                                                                     | 11,024                                                                                                    |
| 6                                                                                                         | Bharatiya Mahila Bank Ltd.                                                                                |                                                                                                           | 0                                                                                                         | 0                                                                                                         | 1                                                                                                         |
| 7                                                                                                         | Canara Bank                                                                                               | 5,786                                                                                                     | 7,371                                                                                                     | 12,490                                                                                                    | 23,349                                                                                                    |
| 8                                                                                                         | Central Bank of India                                                                                     | 8,456                                                                                                     | 11,500                                                                                                    | 11,873                                                                                                    | 21,921                                                                                                    |
| 9                                                                                                         | Corporation Bank                                                                                          | 2,048                                                                                                     | 4,737                                                                                                     | 7,107                                                                                                     | 13,404                                                                                                    |
| 10                                                                                                        | Dena Bank                                                                                                 | 1,452                                                                                                     | 2,616                                                                                                     | 4,393                                                                                                     | 8,311                                                                                                     |
| 11                                                                                                        | IDBI Bank Limited                                                                                         | 6,450                                                                                                     | 9,949                                                                                                     | 12,654                                                                                                    | 25,718                                                                                                    |
| 12                                                                                                        | Indian Bank                                                                                               | 3,255                                                                                                     | 4,284                                                                                                     | 5,366                                                                                                     | 8,272                                                                                                     |
| 13                                                                                                        | Indian Overseas Bank                                                                                      | 5,621                                                                                                     | 7,838                                                                                                     | 13,153                                                                                                    | 25,156                                                                                                    |
| 14                                                                                                        | Oriental Bank of Commerce                                                                                 | 4,184                                                                                                     | 5,618                                                                                                     | 7,666                                                                                                     | 14,678                                                                                                    |
| 15                                                                                                        | Punjab & Sind Bank                                                                                        | 1,537                                                                                                     | 2,554                                                                                                     | 3,082                                                                                                     | 4,205                                                                                                     |
| 16                                                                                                        | Punjab National Bank                                                                                      | 13,255                                                                                                    | 18,611                                                                                                    | 25,318                                                                                                    | 50,043                                                                                                    |
| 17                                                                                                        | Syndicate Bank                                                                                            | 2,816                                                                                                     | 4,264                                                                                                     | 5,904                                                                                                     | 11,542                                                                                                    |
| 18                                                                                                        | UCO Bank                                                                                                  | 6,905                                                                                                     | 6,275                                                                                                     | 9,782                                                                                                     | 19,453                                                                                                    |
| 19                                                                                                        | Union Bank of India                                                                                       | 6,143                                                                                                     | 9,142                                                                                                     | 12,672                                                                                                    | 21,780                                                                                                    |
| 20                                                                                                        | United Bank of India                                                                                      | 2,964                                                                                                     | 7,118                                                                                                     | 6,553                                                                                                     | 8,528                                                                                                     |
| 21                                                                                                        | Vijaya Bank                                                                                               | 1,533                                                                                                     | 1,986                                                                                                     | 2,443                                                                                                     | 5,983                                                                                                     |
| 22                                                                                                        | State Bank of Bikaner & Jaipur                                                                            | 2,119                                                                                                     | 2,733                                                                                                     | 2,945                                                                                                     | 3,603                                                                                                     |
| 23                                                                                                        | State Bank of Hyderabad                                                                                   | 3,186                                                                                                     | 5,824                                                                                                     | 4,985                                                                                                     | 6,591                                                                                                     |
| 24                                                                                                        | State Bank of India                                                                                       | 48,378                                                                                                    | 57,819                                                                                                    | 54,107                                                                                                    | 82,910                                                                                                    |
| 25                                                                                                        | State Bank of Mysore                                                                                      | 2,081                                                                                                     | 2,819                                                                                                     | 2,136                                                                                                     | 2,851                                                                                                     |
| 26                                                                                                        | State Bank of Patiala                                                                                     | 2,453                                                                                                     | 3,758                                                                                                     | 4,360                                                                                                     | 6,767                                                                                                     |
| 27                                                                                                        | State Bank of Travancore                                                                                  | 1,750                                                                                                     | 3,077                                                                                                     | 2,357                                                                                                     | 3,200                                                                                                     |
|                                                                                                           | PUBLIC SECTOR BANKS                                                                                       | 1,55,890                                                                                                  | 2,16,739                                                                                                  | 2,67,065                                                                                                  | 4,76,816                                                                                                  |
| 28                                                                                                        | Catholic Syrian Bank Ltd.                                                                                 | 211                                                                                                       | 334                                                                                                       | 475                                                                                                       | 502                                                                                                       |
| 29                                                                                                        | City Union Bank Ltd.                                                                                      | 173                                                                                                       | 293                                                                                                       | 336                                                                                                       | 543                                                                                                       |
| 30 31                                                                                                     | Dhanlaxmi Bank Limited Federal Bank Ltd.                                                                  | 380 1,554                                                                                                 | 486 1,087                                                                                                 | 558 1,058                                                                                                 | 472                                                                                                       |
|                                                                                                           |                                                                                                           |                                                                                                           |                                                                                                           |                                                                                                           | 1,753                                                                                                     |
| 32                                                                                                        | ING Vysya Bank Ltd.                                                                                       | 121                                                                                                       | 263                                                                                                       | 745                                                                                                       | 0                                                                                                         |
| 33                                                                                                        | Jammu & Kashmir Bank Ltd.                                                                                 | 644                                                                                                       | 783                                                                                                       | 2,764                                                                                                     | 4,537                                                                                                     |
| 34 35                                                                                                     | Karnataka Bank Ltd. Karur Vysya Bank Ltd.                                                                 | 639                                                                                                       | 836                                                                                                       | 944                                                                                                       | 1,177                                                                                                     |
| 36                                                                                                        |                                                                                                           | 286                                                                                                       | 279                                                                                                       | 678                                                                                                       | 507                                                                                                       |
|                                                                                                           | Lakshmi Vilas Bank Ltd.                                                                                   | 460                                                                                                       | 546                                                                                                       | 455                                                                                                       | 391                                                                                                       |
| 37                                                                                                        | Nainital Bank Ltd.                                                                                        | 67                                                                                                        | 61                                                                                                        | 77                                                                                                        | 121                                                                                                       |

| 39          | South Indian Bank Ltd.        | 434         | 433         | 643         | 1,094       |
|-------------|-------------------------------|-------------|-------------|-------------|-------------|
| 40          | Tamilnad Mercantile Bank Ltd. | 214         | 428         | 319         | 350         |
| 41          | Axis Bank Ltd.                | 2,152       | 2,760       | 3,615       | 5,928       |
| 42          | Bandhan Bank Ltd.             | 0           | 0           | 0           | 19          |
| 43          | DCB Bank Ltd                  | 215         | 138         | 186         | 197         |
| 44          | HDFC Bank Ltd.                | 2,048       | 2,738       | 3,108       | 4,173       |
| 45          | ICICI Bank Ltd.               | 9,051       | 9,339       | 13,390      | 19,758      |
| 46          | IndusInd Bank Ltd.            | 458         | 621         | 563         | 777         |
| 47          | Kotak Mahindra Bank Ltd.      | 758         | 1,059       | 1,237       | 2,838       |
| 48          | Yes Bank Ltd                  | 94          | 175         | 313         | 753         |
| 49          | IDFC Bank Limited             | 0           | 0           | 0           | 3,058       |
|             | PRIVATE SECTOR BANKS          | 19,986      | 22,738      | 31,576      | 49,155      |
| Source: RBI | Source: RBI                   | Source: RBI | Source: RBI | Source: RBI | Source: RBI |

| Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   | Public Sector Bank-wise data on Write-offs and Recoveries (Rs. in Crore)   |            |            |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|------------|------------|
| Bank                                                                       | Name                                                                       | Name                                                                       | Name                                                                       | Name                                                                       | Write offs                                                                 | Write offs                                                                 | Write offs                                                                 | Write offs | Write offs |
|                                                                            | 2013                                                                       | 2014                                                                       | 2015                                                                       | 2016                                                                       | 2013                                                                       | 2014                                                                       | 2015                                                                       | 2016       |            |
| Allahabad Bank                                                             | 490                                                                        | 967                                                                        | 827                                                                        | 2,465                                                                      | 1,352                                                                      | 782                                                                        | 2,109 2,097                                                                |            |            |
| Andhra Bank                                                                | 343                                                                        | 324                                                                        | 1,019                                                                      | 729                                                                        | 334                                                                        | 263                                                                        | 1,124                                                                      | 1,179      |            |
| Bank of Baroda                                                             | 626                                                                        | 1,292                                                                      | 1,508                                                                      | 1,481                                                                      | 2,356                                                                      | 964                                                                        | 1,564                                                                      | 1,664      |            |
| Bank of India                                                              | 1,245                                                                      | 3,003                                                                      | 3,145                                                                      | 3,555                                                                      | 2,415                                                                      | 1,767                                                                      | 801                                                                        | 2,374      |            |
| Bank of Maharashtra                                                        | 199                                                                        | 365                                                                        | 430                                                                        | 645                                                                        | 663                                                                        | 401                                                                        | 264                                                                        | 903        |            |
| Bharatiya Mahila Bank Ltd.                                                 |                                                                            | 0                                                                          | 0                                                                          | 0                                                                          |                                                                            | 0                                                                          | 0                                                                          | 0          |            |
| Canara Bank                                                                | 1,204                                                                      | 2,689                                                                      | 1,896                                                                      | 1,279                                                                      | 1,535                                                                      | 1,591                                                                      | 1,472                                                                      | 3,387      |            |
| Central Bank of India                                                      | 1,130                                                                      | 1,764                                                                      | 2,483                                                                      | 3,087                                                                      | 1,061                                                                      | 1,995                                                                      | 1,386                                                                      | 1,279      |            |
| Corporation Bank                                                           | 124                                                                        | 228                                                                        | 318                                                                        | 477                                                                        | 709                                                                        | 463                                                                        | 779                                                                        | 477        |            |
| Dena Bank                                                                  | 227                                                                        | 416                                                                        | 595                                                                        | 728                                                                        | 237                                                                        | 479                                                                        | 515                                                                        | 1,488      |            |
| IDBI Bank Limited                                                          | 251                                                                        | 766                                                                        | 1,159                                                                      | 875                                                                        | 383                                                                        | 1,393                                                                      | 1,609                                                                      | 5,459      |            |
| Indian Bank                                                                | 346                                                                        | 1,079                                                                      | 1,122                                                                      | 526                                                                        | 520                                                                        | 628                                                                        | 550                                                                        | 926        |            |
| Indian Overseas Bank                                                       | 630                                                                        | 2,022                                                                      | 1,557                                                                      | 1,806                                                                      | 1,642                                                                      | 1,474                                                                      | 3,131                                                                      | 2,578      |            |
| Oriental Bank of Commerce                                                  | 754                                                                        | 913                                                                        | 1,010                                                                      | 1,149                                                                      | 1,416                                                                      | 1,252                                                                      | 925                                                                        | 1,668      |            |
| Punjab & Sind Bank                                                         | 117                                                                        | 211                                                                        | 190                                                                        | 217                                                                        | 50                                                                         | 204                                                                        | 263                                                                        | 335        |            |
| Punjab National Bank                                                       | 1,942                                                                      | 2,020                                                                      | 2,259                                                                      | 6,009                                                                      | 997                                                                        | 1,947                                                                      | 6,587                                                                      | 7,340      |            |
| Syndicate Bank                                                             | 730                                                                        | 805                                                                        | 1,055                                                                      | 1,260                                                                      | 1,297                                                                      | 1,025                                                                      | 1,527                                                                      | 1,995      |            |
| UCO Bank                                                                   | 828                                                                        | 2,015                                                                      | 1,629                                                                      | 0                                                                          | 617                                                                        | 1,423                                                                      | 1,401                                                                      | 1,573      |            |
| Union Bank of India                                                        | 1,247                                                                      | 765                                                                        | 1,130                                                                      | 844                                                                        | 1,129                                                                      | 913                                                                        | 931                                                                        | 792        |            |
| United Bank of India                                                       | 375                                                                        | 1,084                                                                      | 1,237                                                                      | 1,095                                                                      | 1,094                                                                      | 481                                                                        | 761                                                                        | 649        |            |
| Vijaya Bank                                                                | 336                                                                        | 436                                                                        | 646                                                                        | 288                                                                        | 543                                                                        | 296                                                                        | 791                                                                        | 510        |            |
| Nationalised Banks                                                         | 13,143                                                                     | 23,165                                                                     | 25,216                                                                     | 28,513                                                                     | 20,351                                                                     | 19,739                                                                     | 28,489                                                                     | 38,674     |            |
| State Bank of Bikaner & Jaipur                                             | 246                                                                        | 472                                                                        | 575                                                                        | 756                                                                        | 463                                                                        | 399                                                                        | 363                                                                        | 1,399      |            |
| State Bank of Hyderabad                                                    | 567                                                                        | 543                                                                        | 1,981                                                                      | 2,503                                                                      | 343                                                                        | 31                                                                         | 355                                                                        | 1,569      |            |
| State Bank of India                                                        | 4,766                                                                      | 7,738                                                                      | 9,235                                                                      | 4,392                                                                      | 5,594                                                                      | 13,177                                                                     | 21,313                                                                     | 15,763     |            |
| State Bank of Mysore                                                       | 241                                                                        | 555                                                                        | 1,014                                                                      | 490                                                                        | 275                                                                        | 403                                                                        | 740                                                                        | 588        |            |
| State Bank of Patiala                                                      | 385                                                                        | 568                                                                        | 1,411                                                                      | 1,405                                                                      | 28                                                                         | 463                                                                        | 755                                                                        | 1,156      |            |
| State Bank of Travancore                                                   | 484                                                                        | 657                                                                        | 1,804                                                                      | 1,474                                                                      | 176                                                                        | 196                                                                        | 526                                                                        | 398        |            |
| SBI Group                                                                  | 6,689                                                                      | 10,533                                                                     | 16,020                                                                     | 11,021                                                                     | 6,880                                                                      | 14,670                                                                     | 24,052                                                                     | 20,873     |            |
| Public Sector Banks                                                        | 19,832                                                                     | 33,698                                                                     | 41,236                                                                     | 39,534                                                                     | 27,231                                                                     | 34,409                                                                     | 52,542                                                                     | 59,547     |            |

Source:RBI