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)

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