Indian banks bad loans has surged to Rs 9.64 lakh crore by end of December 2016 from about Rs 8 lakh crore a year ago, despite a raft of steps to check defaults.
“Total stressed assets (gross non-performing assets and restructured standard advances) of scheduled commercial banks was Rs 9.64 lakh crore as on Dec 31, 2016,” Minister of State in the Ministry of Finance, Santosh Kumar Gangwar said in a written reply to the Lok Sabha.
Reduction in NPAs due to actual recoveries (April to Dec) for SCBs are Rs 46,245 crore at the end of Dec 31, 2016 for global operations, he said.
RBI has provided a number of resolution tools such as Corporate Debt Restructuring (CDR), Formation of Joint Lenders’ Forum (JLF) including rectification, restructuring and recovery, Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Strategic Debt Restructuring Scheme (SDR) and Sustainable Structuring of Stressed Assets (S4A) to check the menace of NPAs.
The government too has taken sector specific measures for infrastructure, power, road, textiles and steel sectors, where incidence of NPA is high, he said.
“The Insolvency and Bankruptcy code (IBC) has been enacted and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans,” he added.
Six new Debt Recovery Tribunals (DRTs) have been established for improving recovery.