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TMI BlogMeasures to Recover Loan Amount from NPAsX X X X Extracts X X X X X X X X Extracts X X X X ..... Measures to Recover Loan Amount from NPAs X X X X Extracts X X X X X X X X Extracts X X X X ..... n to restructured loans, were reclassified as NPAs and provided for. Public Sector Banks (PSBs) initiated cleaning-up by recognising NPAs and provided for expected losses. As a result of transparent recognition of stressed assets as NPAs, the aggregate Gross NPAs of PSBs (as per Reserve Bank of India (RBI) data on global operations), have increased from ₹ 2,79,016 crore, as on 31.3.2015 to & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 8,95,601 crore, as on 31.3.2018 (provisional data). As per RBI inputs, list of the banks having NPAs of ₹ 100 crore or more is at Annexure. A number of measures have been taken to recover loan amount from NPAs, and wilful defaulters. As a result, PSBs recovered an amount of ₹ 1,58,259 crore, during the financial years 2015-16 to 2017-18. To avoid recurrence and for stringent r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecovery, the Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted to create a Unified Framework for resolving insolvency and bankruptcy matters. The Banking Regulation Act, 1949 was amended, to provide for authorisation to RBI to issue directions to banks to initiate the insolvency resolution process under IBC. Under this, by adopting a creditor-in-saddle approach, with the interim resoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on professional taking over management of affairs of Corporate Debtor at the outset, the incentive to resort to abuse of the legal system was taken away. This coupled with debarment of wilful defaulters and persons associated with NPA accounts from the resolution process, has effected a fundamental change in the creditor-debtor relationship. Further, as per RBI's directions, cases have been filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under IBC in the National Company Law Tribunal (NCLT) in respect of 39 large defaulters, amounting to about ₹ 2.69 lakh crore funded exposure (as of December 2017). In addition, recapitalisation of PSBs, announced and initiated by the Government, has enabled upfront provisioning, easing apprehensions in actively pursuing resolution. Further, the Securitisation and Reconstruction of Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) has been amended for faster recovery with a provision for three months imprisonment in case the borrower does not provide asset details and for the lender to get possession of mortgaged property within 30 days. Also, six new Debts Recovery Tribunal have been established to expedite recovery. In addition, under the PSB Reforms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agenda announced by the Government, PSBs have committed to strengthen recovery mechanism by setting-up Stressed Asset Management Verticals for focussed recovery, clean and effective post-sanction follow-up on large-value accounts by tying up with Agencies for Specialised Monitoring for loans of ₹ 250 crore and above, and strict segregation of pre- and post-sanction roles for enhanced account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability. To reduce incidence of default on account of and to effect recovery from wilful defaulters, as per RBI's instructions, wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, their unit is debarred from floating new ventures for five years, and lenders may initiate criminal proceedings against them, wherever necessary. As per data reported by PS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bs, as on 31.3.2018, 2,323 FIRs have been registered against wilful defaulters, 8,835 suits have been filed for recovery from them, and action has been initiated under the SARFAESI in respect of 7,300 cases of wilful defaulters. Securities and Exchange Board of India (SEBI) Regulations have been amended to debar wilful defaulters and companies with wilful defaulters as promoters/directors from acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing capital markets to raise funds. Further, the Insolvency and Bankruptcy Code has been amended to debar wilful defaulters from participating in the insolvency resolution process. Annexure List of banks with gross NPAs with outstanding amount greater than ₹ 100 crore as on 31.3.2018 (provisional data), based on off-site returns for global operations submitted by banks to RBI 1. Alla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... habad Bank 2. Andhra Bank 3. Axis Bank Limited 4. Bank of Baroda 5. Bank of India 6. Bank of Maharashtra 7. Canara Bank 8 Central Bank of India 9. Cooperatieve Rabobank U.A. 10. Corporation Bank 11. Credit Agricole Corporate and Investment Bank 12. DBS Bank Ltd. 13. Dena Bank 14. Deutsche Bank AG 15. Federal Bank Ltd. 16. HDFC Bank Ltd. 17. Hongkong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Shanghai Banking Corpn.Ltd. 18. ICICI Bank Limited 19. IDBI Bank Limited 20. IDFC Bank Limited 21. Indian Bank 22. Indian Overseas Bank 23. IndusInd Bank Ltd. 24. Jammu & Kashmir Bank Ltd. 25. Karnataka Bank Ltd. 26. Karur Vysya Bank Ltd. 27. Kotak Mahindra Bank Ltd. 28. Lakshmi Vilas Bank Ltd. 29. Oriental Bank of Commerce 30. Punjab and Sind Bank 31. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab National Bank 32. South Indian Bank Ltd. 33. Standard Chartered Bank 34. State Bank of India 35. Syndicate Bank 36. The Royal Bank of Scotland Plc 37. UCO Bank 38. Union Bank of India 39. United Bank of India 40. Vijaya Bank 41. Yes Bank Ltd. This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a today.
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