GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARREDQUESTION NO: 71

ANSWERED ON: 0.12.2010

NPAS OF BANKS 

(a) whether the Non-Performing Assets (NPAs) of the Public Sector Bans (PSBs) have increased due to lending to the Micro Small and Medium Enterprises (MSMEs) during the last three years and the current financial year; 

(b) if so, the details thereof and the reasons therefor; and 

(c) the remedial measures taen  being taen by the Government in this regard?

ANSWER

The Minister of State in the Ministry of Finance (SHRI NAMO NARAIN MEENA) 

 (a)  (b): RBI has informed that data on Non-Performing Assets (NPAs) in Micro Small and Medium Enterprises (MSMEs) is not available. However, the NPA position of the Public Sector Bans (PSBs) during the last three years is as follows:           2 #      -  -  -    

 .0          4          .0           

(c): To improve the health of financial sector, to reduce the NPAs, to improve asset uality of the bans and to create a good recovery climate, Reserve Ban of India (RBI) and the Government have already taen 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, 200 and the Recovery of Debts due to Bans and Financial Institutions (DRT) Act, 1 etc.