Question : Vehicle and Housing Loans

a) whether the Government maintains any data/information with regard to vehicle and housing loans disbursed by the Public Sector Banks (PSBs);
b) if so, the details thereof during the last three years and the current year;
c) if not, the reasons therefor and the action taken by the Government in this regard;
d) whether the Government has formulated any policy to ensure timely repayment of the said loans, if so, the details thereof and the manner in which repayment of these loans are to be made;
e) whether the said vehicle and housing loans are not being repaid on time and banks are likely to lose huge amount of funds; and
f) if so, the reaction of the Government in this regard and the corrective steps taken by the Government in this regard?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE


(a) to (c): Reserve Bank of India (RBI) data on domestic operations on Housing Loans and Vehicle/Auto Loans — Advances Outstanding reported by Public Sector Banks, for the last three financial years are at Annexure.
(d): With regard to policy on loans, RBI has informed that it has advised banks to formulate and implement Loan Policy and Loan Recovery Policy with the approval of their respective Boards of Directors and to establish Recovery Cells at Head Office, fix recovery targets for various levels, and closely monitor recovery performance. Banks have also been advised to put in place a robust mechanism for early detection of signs of distress. Further, RBI has advised banks to strengthen the information-sharing mechanism among lenders by making it compulsory for banks to receive/share information on borrowers before sanctioning of loans. RBI has also advised banks to make their IT and MIS system robust so that they are able to generate reliable and quality information with regard to asset quality for effective decision-making.
(e) and (f): Reserve Bank of India (RBI) data on gross NPA ratios, based on domestic operations on Housing Loans and Vehicle/Auto Loans — Advances Outstanding reported by Public Sector Banks, for the last three financial years are at Annexure. These show low gross NPA ratios, indicating timely repayment in most cases.
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