Lok Sabha Question No. 926 (UNSTARRED), answered on 2015-12-04
Subject: One Time Loan Settlements
Ministry: FINANCE
Asked by: SADASHIV KISAN LOKHANDE

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

## LOK SABHA UNSTARRED QUESTION NO †926 TO BE ANSWERED ON THE 4 th DECEMBER, 2015 / AGRAHAYANA 13, 1937 (SAKA)

## QUESTION ONE TIME LOAN SETTLEMENTS

†926: SHRI SADASHIV LOKHANDE Will the Minister of FINANCE be pleased to state:

- (a) the number of one time loan settlements made by the nationalised and private banks in the country during each of the last three years and the current year, State-wise including Maharashtra;
- (b)  the  amount  of  loans  granted/received  by  the  nationalised/private  banks  under  the  one  time  loan settlements during the said period, State-wise including Maharashtra;
- (c)  whether the said arrangements were in accordance with the RBI criteria for one time loan settlements; and
- (d)  if so, the details thereof and if not, the reasons therefor?

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

- (a)  &  (b):  The  amount  of  one  time  loan  settlements  including  write  off  done  and  gross  advances/credit  by Public  and  Private  Sector  Banks  (bank-wise)  in  the  country  during  the  last  three  years  as  collated  and available with the Reserve Bank of India (RBI) is as per Annex.  This information is collated by RBI annually.
- (c) & (d): RBI has deregulated the matters related to One Time Settlement (OTS)/Compromise Settlements vide  DBOD.BP.BC.81/21.01.040/95  dated  July  28,  1995.  Banks  are  autonomous  bodies  and  are  free  to engage in OTS/Compromise Settlements with borrowers as per their Board approved internal policy, their commercial judgment and extant regulatory guidelines..

RBI has issued the following circulars in this regard:

- i) DBOD.No.LEG.BC.114/09.06.002/2000-01 dated May 2, 2001 - Guidelines for compromise settlement of dues of banks and financial institutions through Lok Adalats.
2. ii)  DBOD.No.BC.36/09.06.002/2001-02 dated October 24, 2001 - Guidelines for compromise settlement of dues of banks through Lok Adalats.
3. iii)  DBOD.No.LEG.BC./21/09.06.002/2004-05 dated August 3, 2004 - Guidelines for compromise settlement of dues of banks and financial institutions through Lok Adalats Enhancing the ceiling from Rs. 5 lakh to Rs. 20 lakh.
4. iv)  DBOD.No.BC.34/21.04.048/2007-08  dated  October  4,  2007  -  Guidelines  on  purchase/sale  of  Non Performing Assets
- v)  DBOD.No.BC.55/21.04.117/2007-08  dated  November  30,  2007-  Guidelines  on  settlement  of  Non Performing Assets - Obtaining Consent Decree from Court.
6. vi)  DBOD.No.BC.112/21.04.048/2009-10 dated June 21, 2010 -Compromise/Negotiated/One Time settlement  of  Non  Performing  Assets  -  Appending  of  certificate  that  the  compromise  settlements  are  in conformity with the RBI guidelines.

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| ANNEX TO QUESTION NO. 926 AND PRIVATE SECTOR BANKS - WISE DATA ON ONE TIME   | ANNEX TO QUESTION NO. 926 AND PRIVATE SECTOR BANKS - WISE DATA ON ONE TIME   | ANNEX TO QUESTION NO. 926 AND PRIVATE SECTOR BANKS - WISE DATA ON ONE TIME   | ANNEX TO QUESTION NO. 926 AND PRIVATE SECTOR BANKS - WISE DATA ON ONE TIME   | ANNEX TO QUESTION NO. 926 AND PRIVATE SECTOR BANKS - WISE DATA ON ONE TIME   |
|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| PUBLIC SECTOR BANKS SETTLEMENTS Bank Name                                    | INCLUDING WRITE Mar-12                                                       | OFFs (Rs. Mar-13                                                             | Crore) Mar-14                                                                | Mar-15                                                                       |
| Allahabad Bank                                                               | 1,001                                                                        | 1,352                                                                        | 782                                                                          | 2,109                                                                        |
| Andhra Bank                                                                  | 169                                                                          | 334                                                                          | 263                                                                          | 1,124                                                                        |
| Bank of Baroda                                                               | 1,215                                                                        | 2,356                                                                        | 964                                                                          | 1,564                                                                        |
| Bank of India                                                                | 2,415                                                                        | 2,415                                                                        | 1,767                                                                        | 801                                                                          |
| Bank of Maharashtra                                                          | 395                                                                          | 663                                                                          | 401                                                                          | 264                                                                          |
| Bharatiya Mahila Bank Ltd.                                                   |                                                                              |                                                                              | 0                                                                            | 0                                                                            |
| Canara Bank                                                                  | 1,460                                                                        | 1,535                                                                        | 1,591                                                                        | 1,472                                                                        |
| Central Bank of India                                                        | 629                                                                          | 1,061                                                                        | 1,995                                                                        | 1,386                                                                        |
| Corporation Bank                                                             | 565                                                                          | 709                                                                          | 463                                                                          | 779                                                                          |
| Dena Bank                                                                    | 194                                                                          | 237                                                                          | 479                                                                          | 515                                                                          |
| IDBI Bank Limited                                                            | 319                                                                          | 383                                                                          | 1,393                                                                        | 1,609                                                                        |
| Indian Bank                                                                  | 506                                                                          | 520                                                                          | 628                                                                          | 550                                                                          |
| Indian Overseas Bank                                                         | 1,166                                                                        | 1,642                                                                        | 1,474                                                                        | 3,131                                                                        |
| Oriental Bank of Commerce                                                    | 933                                                                          | 1,416                                                                        | 1,252                                                                        | 925                                                                          |
| Punjab & Sind Bank                                                           | 39                                                                           | 50                                                                           | 204                                                                          | 263                                                                          |
| Punjab National Bank                                                         | 126                                                                          | 997                                                                          | 1,947                                                                        | 6,587                                                                        |
| Syndicate Bank                                                               | 891                                                                          | 1,297                                                                        | 1,025                                                                        | 1,527                                                                        |
| UCO Bank                                                                     | 391                                                                          | 617                                                                          | 1,423                                                                        | 1,401                                                                        |
| Union Bank of India                                                          | 938                                                                          | 1,129                                                                        | 913                                                                          | 931                                                                          |
| United Bank of India                                                         | 233                                                                          | 1,094                                                                        | 481                                                                          | 761                                                                          |
| Vijaya Bank                                                                  | 214                                                                          | 543                                                                          | 296                                                                          | 791                                                                          |
| State Bank of Bikaner & Jaipur                                               | 275                                                                          | 463                                                                          | 399                                                                          | 363                                                                          |
| State Bank of Hyderabad                                                      | 265                                                                          | 343                                                                          | 31                                                                           | 355                                                                          |
| State Bank of India                                                          | 744                                                                          | 5,594                                                                        | 13,177                                                                       | 21,313                                                                       |
| State Bank of Mysore                                                         | 165                                                                          | 275                                                                          | 403                                                                          | 740                                                                          |
| State Bank of Patiala                                                        | 120                                                                          | 28                                                                           | 463                                                                          | 755                                                                          |
| State Bank of Travancore                                                     | 182                                                                          | 176                                                                          | 196                                                                          | 526                                                                          |
| Public Sector Banks                                                          | 15,551                                                                       | 27,231                                                                       | 34,409                                                                       | 52,542                                                                       |
| Catholic Syrian Bank Ltd.                                                    | 33                                                                           | 26                                                                           | 1                                                                            | 111                                                                          |
| City Union Bank Ltd.                                                         | 52                                                                           | 102                                                                          | 133                                                                          | 148                                                                          |
| Dhanlaxmi Bank Limited                                                       | 2                                                                            | 1                                                                            | 70                                                                           | 180                                                                          |
| Federal Bank Ltd.                                                            | 108                                                                          | 11                                                                           | 468                                                                          | 233                                                                          |
| ING Vysya Bank Ltd.                                                          | 52                                                                           | 69                                                                           | 52                                                                           | 363                                                                          |
| Jammu & Kashmir Bank Ltd.                                                    | 114                                                                          | 87                                                                           | 7                                                                            | 25                                                                           |
| Karnataka Bank Ltd.                                                          | 203                                                                          | 192                                                                          | 146                                                                          | 219                                                                          |
| Karur Vysya Bank Ltd.                                                        | 16                                                                           | 137                                                                          | 69                                                                           | 151                                                                          |
| Lakshmi Vilas Bank Ltd.                                                      | 11                                                                           | 28                                                                           | 231                                                                          | 15                                                                           |
| Nainital Bank Ltd.                                                           | 4                                                                            | 0                                                                            | 0                                                                            | 0                                                                            |
| Ratnakar Bank Ltd.                                                           | 0                                                                            | 18                                                                           | 1                                                                            | 5                                                                            |
| South Indian Bank Ltd.                                                       | 26                                                                           | 144                                                                          | 164                                                                          | 43                                                                           |
| Tamilnad Mercantile Bank Ltd.                                                | 48                                                                           | 48                                                                           | 30                                                                           | 276                                                                          |
| Axis Bank                                                                    | 666                                                                          | 800                                                                          |                                                                              | 1,210                                                                        |
| Ltd. DCB Bank Ltd                                                            | 37                                                                           | 66                                                                           | 896 125                                                                      | 47                                                                           |
| HDFC Bank Ltd.                                                               | 941                                                                          | 1,136                                                                        | 1,429                                                                        | 1,840                                                                        |
| ICICI Bank Ltd.                                                              | 1,183                                                                        | 1,646                                                                        | 2,177                                                                        | 1,696                                                                        |
| Kotak Mahindra Bank Ltd.                                                     | 99                                                                           | 133                                                                          | 206                                                                          | 99                                                                           |
| Yes Bank Ltd                                                                 | 26                                                                           | 107                                                                          | 74                                                                           | 53                                                                           |

| Private Sector Banks                                                                    | 3,696                                                                                   | 4,896                                                                                   | 6,462                                                                                   | 7,318                                                                                   |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| Source:Off-site Baalance sheet analysis returns as reported by banks, global operations | Source:Off-site Baalance sheet analysis returns as reported by banks, global operations | Source:Off-site Baalance sheet analysis returns as reported by banks, global operations | Source:Off-site Baalance sheet analysis returns as reported by banks, global operations | Source:Off-site Baalance sheet analysis returns as reported by banks, global operations |