Press Information Bureau
Government of India
Ministry of Finance
22-November-2016 18:08 IST

Waiver of Loans to Industrialists

The details of industrialists against whom a debt exceeding Rs.50 crore remains pending along with debt amount is as under:

NPA accounts above Rs.50 crore for PSBs as on June 30, 2016
No. of NPA Accounts Amount (Rs. in Crore)
2071   3,88,919

 Source: PSBs

In terms of instructions of Reserve Bank of India (RBI), every bank has to have its own recovery policy including the manner and procedure of write-offs. Loans are written off after appropriate provisions have been made to take advantage of tax benefits and capital optimization. In respect of technical write-offs, RBI has permitted write-offs at Head Office level while recovery efforts are still continued at branch level.

Disclosure of write-offs is mandatory to be published in the balance sheet of the banks as per RBI master circular on Disclosure in Financial Statements – ‘Notes to Accounts’ dated July 1, 2015.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.


Rise in NPAS in the Banking Sector

The details of Gross Advances, Gross Non-Performing Assets (GNPA)+ Restructured Advances and Gross NPA + Restructured Advances ratio of Scheduled Commercials Banks (SCBs) for last three years are as under:

SCHEDULED COMMERCIAL BANKS (Rs. In crore)
GROSS

ADVANCES

GROSS NPA + RESTRUCTURED ADVANCES GNPA + RESTRUCTURED ADVANCES RATIO
FY 2014 61,01,775 6,08,967 9.98%
FY 2015 66,91,204 7,28,925 10.89%
FY 2016 72,73,202 8,32,786 11.45%

 Main reasons for increase in NPAs of banks are slowdown in recovery in the global economy and continuing uncertainty in the global markets leading to lower exports of various products like textiles, engineering goods, leather, gems, etc. The PSB’s continue to be under stress on account of aggressive lending in the past.

NITI Aaayog has not moved any proposal to create a bad bank to hold the stresses and non-productive assets and loan recovery of banks.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

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