GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
RAJYA SABHA
UNSTARRED QUESTION NO: 1491
TO BE ANSWERED ON THE 31st JULY, 2018/SHRAVANA 09, 1940 (SAKA)
QUESTION
NPAs AFTER AQR BY RBI
Will the Minister of FINANCE be pleased to state:
To be answered by
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SHIV PRATAP SHUKLA)
(a) to (c): Asset Quality Review (AQR) was carried out in 2015, with reference to the position as on 31.3.2015, for clean and fully provisioned bank balance-sheets. It revealed high incidence of Non-Performing Assets (NPAs). Expected losses on stressed loans, not provided for earlier under flexibility given to restructured loans, were reclassified as NPAs and provided for. Public Sector Banks (PSBs) initiated cleaning up by recognising NPAs and provided for expected losses. Further, during the financial year (FY) 2017-18, all such schemes for restructuring stressed loans were withdrawn. The aggregate gross NPAs of PSBs increased primarily as a result of this transparent recognition of stressed assets as NPAs, from Rs. 2,79,016 crore, as on 31.3.2015, to Rs. 8,95,601 crore, as on 31.3.2018 (provisional data), as per RBI data on global operations. As per RBI inputs, part of this increase is attributable to AQR.
With regard to the percentage of the loans that have become NPAs after AQR disbursed before May 2014, RBI has informed that RBI does not collect data on NPAs based on the original date of sanction of loans and as such, it does not have information with reference to any particular date of disbursal.
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