GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF FINANCIAL SERVICES

RAJYA SABHA

UNSTARRED QUESTION NO. 556

TO BE ANSWERED ON THE 7^th FEBRUARY, 2017/ MAGHA 18, 1938 (SAKA)

Speedy Recovery of NPAs by PSBs

556: SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of FINANCE be pleased to state:

(a)the total amount of loans classified as NPAs by the Public Sector Banks as on 2017;

(b)the recovery rate of the NPAs in the PSBs in the last two years, the details thereof, bank-wise;

(c)whether there has been a slowdown in the recovery of NPAs in the last two years; if so, the reasons therefor; and

(d)the steps taken by Government to ensure speedy recovery of the NPAs by the PSBs?

ANSWER

To be answered by

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SANTOSH KUMAR GANGWAR)

(a)to (c): Non-Performing Assets (NPAs) of Public Sector Banks (PSBs) as on September, 2016 stands at Rs. 5,89,502 Crore (11.82%).

During FY 2015 and FY 2016 PSBs made total NPA recoveries of Rs. 42,542 Crore and Rs. 39, 986 Crore, respectively. The bank-wise details of recovery of NPAs due to actual recoveries in the PSBs during the last two years as per Annex. Based on above data it is observed that PSBs recorded only a moderate decline of Rs. 2, 556 Crore in NPA recoveries.

(d)The Government has taken sector specific (Infrastructure, Power, Road, textiles, Steel etc.) where incidence of NPA is high. The Insolvency and Bankruptcy code (IBC) has been enacted and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans. Six new Debt Recovery Tribunals (DRTs) have been established for improving recovery. RBI has provided a number of tools in this regard- Corporate Debt Restructuring (CDR), Formation of Joint Lender’s Forum (JLF), Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Strategic Debt Restructuring Scheme (SDR) and Sustainable Structuring of Stressed Assets (S4A).

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