Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES 

RAJYA SABHA
UNSTARRED QUESTION N0. 2199
ANSWERED ON DECEMBER 13, 2012 / AGRAHAYANA 22, 1934 (SAKA) 

QUESTION
Loan Restructuring of Public Sector Units (PSUs) 
 

2199. SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of  FINANCE be pleased to state: 

(a)   whether Government is aware of a large number of private companies that have availed of credit and loans from Public Sector Unit (PSU) Banks, and are now approaching the PSU Banks to restructure/write-off their entire or considerable part of their borrowings; 

(b)   if so, the details thereof for the last three years, year-wise, bank-wise, company-wise; and 

(c)    the implication of this on the PSU banks and whether there will be any demand from Government and the Exchequer to fund these PSU banks further, as a consequence of such losses/restructuring? 

 

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA) 

(a) & (b): The Public Sector Bank (PSB)-wise details of restructured standard advances for the period March 2010, March 2011, March 2012 are as under:

                                                                                (Amount Rs. In Crore)

Name of Bank

March 2010

March 2011

March 2012

Nationalised banks

88942

89297

160249

State Bank Group

37282

40513

43385

Public Sector Banks

126224

129810

203634

 

The data reporting system of the Reserve Bank of India (RBI) does not collect company-wise details. 

(c): The objective of restructuring is to conserve valuable financial assets in a downturn, revival of entities and ensuring safety of the funds lent by the banks. Although, the Gross Non-Performing Assets and restructuring of loans of PSBs have shown an increasing trend, at system level, they do not indicate any systemic vulnerability. The PSBs have posted a net profit of around Rs. 49,500 crore as on 31.3.2012 as against around Rs. 44,900 crore as on 31.3.2011. The Tier I Capital to Risk-weighted Asset Ratio (CRAR) of all PSBs are above the regulatory norms of 6%. As of now, there is no proposal before the Government to support funding of restructuring by PSBs