Question : LOAN DEFAULTERS

(a) whether many `Real Estate` and `Airlines` Companies have defaulted in the payment of loans advanced to them by the banks;

(b) if so, the details thereof during the last three years;

(c) the steps taken by the Government and the Reserve Bank of India (RBI) in this regard;

(d) whether the Government has taken note that a consortium of banks including SBI has mooted proposal to advance fresh loans to airline companies; and

(e) if so, the details thereof alongwith the steps taken/being taken by the Government and RBI to monitor the grant of these loans?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)

(a) & (b): The Gross Non-Performing Assets (NPAs) in Real Estate Sector in respect of Scheduled Commercial Bank has increased marginally from Rs. 11,112 crore in March 2010 to Rs. 11,553 crores in March 2011. However, in Aviation Sector the NPAs were reduced from Rs. 811 crores in March 2010 to Rs. 249 crores in March 2011, This reduction is due to restructuring of Advances in this Sector. The NPAs again increased to Rs. 402 crores as in September, 2011.

(c): Various steps have been taken by the bank to reduce the NPAs which include legal measures, compromises/One Time Settlement, Debts Restructuring, strengthening of the risk management systems etc.

(d): The State Bank of India (SBI) and the consortium restructured advances in Aviation Sector in August-September, 2010. However, SBI has informed that there is no such proposal at present.

(e): Does not arise.