NPA

(a)the details of the total amount of credit given by the public and private sector banks to various sectors during each of the last three years and the current financial year;

(b)whether Non-Performing Assets (NPAs) of public and private sector banks have increased during the said period;

(c)if so, the details of NPAs of PSBs in agriculture, industry, trade and service sectors during the said period, bank-wise and sector-wise;

(d)the details of NPAs of PSBs recovered and written off during the same period, bank-wise and sector-wise; and

(e)whether the system of recovery of NPAs of PSBs is being implemented effectively and if so, the details thereof and the measures taken / being taken by the Government to streamline loan recovery policy and to evolve innovative methods for recovery of NPAs including initiating criminal proceedings against willful defaulters?

Will the Minister of FINANCEbe pleased to state:-

ANSWER

The Minister of State in the Ministry of Finance (Shri Namo Narain Meena)

(a)& (b): The details of Gross Advances and Gross Non-performing Assets (NPA) of Public Sector Banks and Private banks during the last three years and current year are as under:-

Bank Groups Gross Advances Gross NPAs Public Sector

Mar 2011 30,59,953 71,080

Mar 2012 35,50,389 1,12,489

Mar 2013 40,55,874 1,55,890

Sep 2013 42,20,014 2,03,270

Old Private Sector Mar 2011 1,87,296 3,695

Mar 2012 2,32,918 4,200

Mar 2013 2,73,120 5,210

Sep 2013 2,79,364 6,734

New Private Sector Banks

Mar 2011 5,45,014 14,277

Mar 2012 6,47,528 14,115

Mar 2013 7,72,643 14,776

Sep 2013 8,23,737 16,048

(c): The bank-wise and sector-wise Non-performing assets of Public Sector Banks (PSBs) during the last three years are at Annex-I.

(d): The bank-wise details of recovery and written off amount by Public Sector Banks are at Annex-II.

(e): To improve asset quality of banks, and to reduce NPAs, the Government has advised Public Sector Banks (PSBs) to take a number of new initiatives to increase the pace of recovery and manage NPAs, which, inter-alia, include appointment of Nodal officers for recovery, to conduct special drives for recovery of loss assets, to put in place early warning system, and to constitute a Board level Committee for monitoring of recovery.

RBI and the banks have already taken various steps over the years, which, inter-alia, include prescribing prudential norms for provisioning and classification of non-performing assets, guidelines for prevention of slippages, Corporate Debt Restructuring and other restructuring schemes, One Time Settlement schemes, enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the Credit Information Companies (Regulation) Act, 2005 and the Recovery of Debts due to Banks and Financial Institution (RDDBFI) Act, 1993, etc.

Further, to ensure effective and expeditious recovery of defaulted loans of Banks and Financial Institutions, the Enforcement of Security interest and Recovery of Debts Laws (Amendment) Act, 2012’ (No.1 of 2013) has been enacted bringing out certain amendments in the SARFAESI, Act, 2002 and RDDBFI Act, 1993.