THE MINISTER OF STATE FOR FINANCE
(a) and (b): Bank-wise details of gross NPAs, amount of NPAs recovered, amount of NPAs written off and new accretion to NPAs of Public Sector Banks and Scheduled Commercial Banks during the financial years (FY) 2020-21 and FY 2021-22 (provisional data) are at Annex.
(c) to (f): The occurrence of non-performing assets (NPAs) is a normal, although undesirable corollary to the business of banking. Build-up of NPAs may generally be attributed to several factors, including, inter alia, prevailing macroeconomic conditions, sectoral issues, global business environment, delayed recognition of stress by the banks, aggressive lending during upturns, improper risk pricing and poor credit underwriting, lack of specialised skills in project appraisals, flawed governance structures, time and cost overruns in project implementation and lack of suitable legal mechanisms for resolution of NPAs.
Government and RBI regularly issue guidelines and have taken several initiatives aimed at resolution of long-standing stressed assets on the books of banks as well as timely identification and recognition of stress immediately upon default and take corrective actions for mitigation of the same. These measures complement the statutory provisions already available to lenders for recovery and resolution, including, inter alia, Recovery of Debts and Bankruptcy Act, 1993, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Insolvency & Bankruptcy Code, 2016 (IBC).
As a result of comprehensive steps taken by the Government and RBI to check the cases of NPAs and bring them down, Scheduled Commercial Banks recovered Rs. 8,60,369 crore over the last eight financial years (provisional data) from NPAs.
The steps taken include, inter alia, the following –
(1) Change in credit culture has been effected, with the Insolvency and Bankruptcy Code (IBC) fundamentally changing the creditor-borrower relationship, taking away control of the defaulting company from promoters/owners, and debarring wilful defaulters from the resolution process. To make the process more stringent, personal guarantor to corporate debtor has also been brought under the ambit of IBC. Under IBC, resolution plans have been approved in 480 cases up to March 2022, with Rs. 2.34 lakh crore amount realisable by financial creditors.
(2) Central Repository of Information on Large Credits (CRILC) has been set up by RBI to collect, store and disseminate credit data to lenders, and banks are required to submit report on weekly basis to CRILC, in case of any default by borrowing entities with exposure of Rs. 5 crore and above.
(3) Guidelines have been issued in respect to prudential framework for resolution of stressed assets which provides for early recognition and resolution of default by large borrowers within a time bound manner and dis-incentivise delayed resolution in the form of additional provisioning to be maintained by the lenders.
(4) Under the PSB Reforms Agenda, comprehensive and automated Early Warning Systems (EWS) were instituted in PSBs, with ~80 EWS triggers and use of third-party data for time-bound remedial actions in the borrowing accounts. further, PSBs have created Stressed Asset Management Verticals for stringent recovery, segregated pre- and post-sanction follow-up roles for clean and effective monitoring, and engaging specialised monitoring agencies for monitoring of large-value accounts.
In addition to this, steps were also taken to deter defaulters, including, inter alia, the following –
(1) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has been amended to make it more effective, with provision for three months’ imprisonment in case the borrower does not provide asset details, and for the lender to get possession of mortgaged property within 30 days.
(2) As per RBI instructions, wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from floating new ventures for five years.
(3) Wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise funds, vide Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2016.
(4) Jurisdiction of Debt Recovery Tribunal (DRTs) was increased from Rs. 10 lakh to Rs. 20 lakh to enable the DRTs to focus on high value cases resulting in higher recovery for the banks and financial institutions. Six new DRTs have also been established to expedite recovery.
(5) All Credit Institutions have been mandated by RBI to become members of all credit information companies (CICs) and submit credit information, including historical data, pertaining to borrowers to CICs, and the data to be updated regularly and to be shared with other credit institutions.
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Annex referred to in
Lok Sabha Unstarred question no. 45, regarding NPAs of PSBs
Details of Non-performing Assets of Scheduled Commercial Banks
amount in crore Rs.
Bank Gross NPAs Amount Recovered Amount written-off New Accretion to NPAs
As on 31.3.2021 As on 31.3.2022* FY 2020-21 FY 2021-22* FY 2020-21 FY 2021-22* FY 2020-21 FY 2021-22*
American Express Banking Corp. 253 227 105 476 127 215 370 286
Au Small Finance Bank Limited 1,503 924 30 110 115 188 1,273 1,431
Australia and New Zealand Banking Group Limited 25 25 - - - - - -
Axis Bank Limited 22,682 18,566 2,938 2,948 12,018 9,126 16,211 18,576
Bandhan Bank Limited 5,758 6,380 12 555 2,038 3,247 6,888 9,430
Bank of Bahrain & Kuwait B.S.C. 14 17 6 5 61 9 3 17
Bank of Baroda 66,671 54,059 5,372 6,054 14,782 17,967 17,952 11,046
Bank of Ceylon 33 54 1 3 1 0 15 23
Bank of India 56,535 45,605 4,155 6,761 8,815 10,443 8,815 8,919
Bank of Maharashtra 7,780 5,327 1,458 1,174 4,931 3,118 2,202 2,182
Bank of Nova Scotia 64 64 5 - - - - 0
Barclays Bank PLC 268 111 41 - 73 163 51 57
BNP Paribas 7 6 - - - 1 - -
Canara Bank 60,288 54,436 7,286 8,577 7,642 8,210 16,482 17,954
Capital Small Finance Bank Limited 78 117 2 6 0 0 25 78
Central Bank of India 29,277 28,156 2,675 3,110 5,992 1,236 6,458 5,797
Citibank N.A. 991 758 296 391 370 576 853 952
City Union Bank Limited 1,893 1,933 195 442 412 629 1,113 1,276
Cooperatieve Rabobank U.A. 372 150 - - - 175 202 -
Credit Agricole Corporate and Investment Bank 3 3 - - - - - -
CSB Bank Limited 393 290 65 527 138 110 201 757
CTBC Bank Co., Ltd. 2 1 1 0 - - - -
DBS Bank India Ltd. 488 4,557 16 771 139 438 145 611
Lakshmi Vilas Bank Ltd (LVB)# 4,845 - 132 - 108 - 1,045 -
DCB Bank Limited 1,083 1,290 75 531 126 88 686 1,772
Deutsche Bank Ag 1,457 2,732 177 290 485 213 709 2,086
Doha Bank Q.P.S.C 27 27 - - - - 18 -
Equitas Small Finance Bank Limited 643 837 81 312 245 360 589 1,389
ESAF Small Finance Bank Limited 564 950 4 44 - 74 473 1,085
Federal Bank Ltd 4,602 4,137 367 824 398 929 1,922 1,869
Fincare Small Finance Bank Limited 354 573 1 82 28 370 351 1,098
Firstrand Bank Ltd 28 - - - - - - -
HDFC Bank Ltd. 14,999 16,101 2,708 6,844 9,289 9,405 12,220 25,999
Hongkong and Shanghai Banking Corpn. Ltd. 913 644 41 73 185 234 570 408
ICICI Bank Limited 40,841 33,295 4,704 6,223 9,507 10,148 15,846 19,036
IDBI Bank Limited 36,212 34,115 4,518 2,779 8,392 2,889 2,632 5,866
IDFC First Bank Limited 4,303 4,469 407 1,258 1,433 4,202 4,035 7,552
Indian Bank 38,455 35,214 3,856 3,475 8,371 8,347 9,394 10,136
Indian Overseas Bank 16,323 15,299 1,635 1,378 4,618 3,769 3,678 4,817
Indusind Bank Ltd 5,795 5,517 1,558 3,403 4,055 4,385 7,664 10,103
Industrial and Commercial Bank of China - - - - 35 - - -
Jammu & Kashmir Bank Ltd 6,955 6,521 403 602 1,185 758 1,261 2,918
Jana Small Finance Bank Limited 858 757 17 572 233 585 828 1,304
Karnataka Bank Ltd 2,588 2,251 438 485 1,060 585 1,346 1,553
Karur Vysya Bank Ltd 4,143 3,431 377 574 619 879 959 843
KEB Hana Bank 40 40 1 - 12 - - -
Kotak Mahindra Bank Ltd. 7,426 6,470 1,155 2,074 628 1,230 5,488 4,316
Mizuho Bank Ltd 6 6 - - - - - -
Nainital Bank Ltd 651 521 51 115 1 119 173 125
North East Small Finance Bank Limited 192 190 3 18 - 81 170 97
PT Bank Maybank Indonesia TBK 18 - - - - 18 - -
Punjab and Sind Bank 9,334 8,565 879 1,011 71 1,134 1,557 2,065
Punjab National Bank 1,04,423 92,448 11,442 15,788 15,877 18,312 28,940 27,378
Qatar National Bank (Q.P.S.C.) 50 53 - - - - 50 3
RBL Bank Limited 2,602 2,728 675 899 1,675 2,294 3,148 3,943
Sberbank 92 41 0 0 - 50 - -
SBM Bank (India) Ltd. 88 93 16 5 12 19 1 29
Shinhan Bank 128 154 1 16 - - 29 41
Shivalik Small Finance Bank Limited - 33 - 2 - - - 8
Societe Generale 79 79 - - - - - -
Sonali Bank 4 4 0 - - - - -
South Indian Bank Ltd 4,143 3,648 179 1,152 1,135 700 2,340 2,159
Standard Chartered Bank 4,674 3,886 446 650 1,697 1,325 4,513 2,319
State Bank of India 1,26,389 1,12,023 13,381 10,343 34,402 19,666 28,563 25,021
Suryoday Small Finance Bank Limited 394 598 4 59 97 231 399 533
Tamilnad Mercantile Bank Ltd 1,085 571 118 355 393 321 587 518
The Dhanalakshmi Bank Ltd 657 534 97 165 14 83 391 364
UCO Bank 11,352 10,237 1,168 1,299 9,410 3,851 3,102 6,123
Ujjivan Small Finance Bank Limited 1,071 1,284 15 520 74 789 1,033 2,088
Union Bank of India 89,788 79,587 5,190 5,852 16,983 19,484 17,443 22,877
United Overseas Bank Ltd 75 75 - - - - - -
Utkarsh Small Finance Bank Limited 315 648 1 50 35 219 310 654
Yes Bank Ltd. 28,610 27,976 3,288 1,868 12,240 971 12,037 5,795
Source: RBI
*provisional data
#LVB was amalgamated with DBS Bank India Ltd. on 27.11.2020. However, LVB data was reported as a separate entity till March 2021.
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