Question : Insolvency and Bankruptcy Code

(a) whether the Gross Non-Performing Assets (NPAs) of the Public Sector Banks (PSBs) has risen significantly during the last three years, if so, the details thereof;
(b) whether the rise in gross NPAs of PSBs is due mainly by wilful defaulters, if so, the total outstanding loans by wilful defaulters during the last three years and the current year, bank-wise;
(c) whether the borrowers have a very comfortable environment and the lenders are actually facing the heat, if so, the details thereof;
(d) the action taken by the Government against the wilful defaulters;
(e) whether the Government has formed 14-members Committee to take stock of the functioning and implementation of Insolvency and Bankruptcy Code (IBC); and
(f) if so, the details of the recommendations made and the action taken by the Government thereto?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE


(a) As per Reserve Bank of India (RBI) data on domestic operations, Gross Non Performing Assets of Public Sector Banks (PSBs), were Rs. 2,16,739 crore as on 31.3.2014, and increased to Rs. 6,89,806 crore as on 30.9.2017.
(b) to (d): As per RBI instructions, banks and financial institutions are required to report wilful defaulter accounts of Rs. 25 lakh and above to Credit Information Companies Vide circular dated 29.9.2016, RBI has provided a mechanism to publish photographs of wilful defaulters in newspapers as per Board-approved policy of the financial institution concerned.
Bank-wise details of wilful defaulters and action taken in their respect by Public Sector Banks (PSBs), are at Annexure.
(e) and (f): Government has formed a 14-member committee to identify the issues that may impact the efficiency of the corporate insolvency resolution and liquidation framework prescribed under the Insolvency and Bankruptcy Code and make suitable recommendations to address such issues to enhance efficiency of the processes prescribed for effective implementation of the Code. Recommendations of the committee have not been submitted yet.
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