Question : NPAS OF BANKS

(a) whether the Non-Performing Assets (NPAs) of the Public Sector Banks (PSBs) have increased due to lending to the Micro Small and Medium Enterprises (MSMEs) during the last three years and the current financial year;

(b) if so, the details thereof and the reasons therefor; and

(c) the remedial measures taken / being taken by the Government in this regard?

Answer given by the minister

The Minister of State in the Ministry of Finance (SHRI NAMO NARAIN MEENA)

(a) & (b): RBI has informed that data on Non-Performing Assets (NPAs) in Micro Small and Medium Enterprises (MSMEs) is not available. However, the NPA position of the Public Sector Banks (PSBs) during the last three years is as follows:

Amount Outstanding at end (Rs, Crore)	Mar-08	Mar-09	Mar-10
Gross NPAs	39,749	44,039	57,301
Total Gross Advances	1,696,333	2,103,763	2,519,331
Gross NPAs to Gross Advances(%)	2.34	2.09	2.27

(c): To improve the health of financial sector, to reduce the NPAs, to improve asset quality of the banks and to create a good recovery climate, Reserve Bank of India (RBI) and the Government have already taken various steps over the years, which, inter-alia, include prescribing prudential norms for provisioning and classification of non-performing assets, guidelines for prevention of slippages, Corporate Debt Restructuring and other restructuring schemes, One Time Settlement schemes, enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the Credit Information Companies (Regulation) Act, 2005 and the Recovery of Debts due to Banks and Financial Institutions (DRT) Act, 1993 etc.

Question : NPAS OF BANKS

Answer given by the minister

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