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Loan Recoverability of Banks in India

File Picture Courtesy : Deccan Chronicle
File Picture Courtesy: Deccan Chronicle

India banking sector is passing through a tough time after the Videocon Loan Row, the Nirav Modi Fiasco and swallowing Non-Performing Assets (NPAs). All of these episodes are eroding the credibility in India and the rest of world. Another important is issues is fragile corporate governance in India.  In this backdrop, questions on the loan recovery by banks are highly desirable. On being asked about the loan recoverability of banks, Shiv Pratap Shukla, Minister of State for Finance stated in a written reply to a question in Lok Sabha recently.

As per Reserve Bank of India (RBI) guidelines, banks are to have a loan recovery policy, prepared and duly vetted by their boards. A number of mechanisms are available to banks to effect recoveries, such as filing of a suit in Civil courts or in Debts Recovery Tribunals and action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. In addition, the Insolvency and Bankruptcy Code, 2016 has been enacted for time-bound resolution of stressed assets. Further, the Banking Regulation Act, 1949 has been amended to provide for authorisation by the Government to RBI, for issuing directions to banks to initiate the insolvency resolution process under the Code, and in pursuance of such directions, banks have filed applications in case of severs/large credit exposures before the National Company Law Tribunal. Further, keeping in view the enactment of the Code, RBI has recently issued a Revised Framework for Resolution of Stressed Assets, which provides for time-bound resolution of high-value stressed accounts.

As per data reported by PSBs, 1,77,614 properties have been attached and auctioned by them and an amount of Rs. 15,196 crore has been recovered during the financial years 2014-15 to 2017-18 (till 31.12.2017).

As per RBI data on global operations, as on 31.12.2017, the details of Gross Loans and Advances of Scheduled Commercial Banks, are given below.

Gross Loans and Advances of Scheduled Commercial Banks, as on 31.12.2017: 

 

Amounts in crore Rupees
Bank Name Gross Loans and Advances
AB Bank Limited 5
Abu Dhabi Commercial Bank PJSC 1,48
Allahabad Bank 1,61,79
American Express Banking Corp. 4,46
Andhra Bank 1,51,49
Australiaand New Zealand Banking Group Limited 2,21
Axis Bank Limited 4,32,35
Bandhan Bank Limited 23,13
Bank of America, NationalAssociation 13,18
Bank of Bahrain and Kuwait B.S.C. 1,29
Bank of Baroda 4,28,71
Bank of Ceylon 31
Bank of India 3,79,53
Bank of Maharashtra 95,169
Bank of Nova Scotia 3,880
Barclays Bank PLC 10,500
BNP Paribas 20,037
Canara Bank 3,88,518
CapitalSmall Finance Bank Limited 1,583
Catholic Syrian Bank Ltd. 9,772
Central Bank of India 1,79,702
CitibankN.A 57,597
City Union Bank Limited 26,089
Cooperatieve Rabobank U.A. 2,277
Corporation Bank 1,37,049
Credit Agricole Corporate And Investment Bank 4,796
Credit Suisse AG 929
CTBC Bank CoLtd.. 520
DBS Bank Ltd. 18,605
DCB Bank Limited 18,799
Dena Bank 72,443
Deutsche Bank AG 38,472
Doha Bank QSC 631
Emirates NBD Bank (P.J.S.C.) 277
Equitas Small Finance Bank Limited 7,166
Federal Bank Ltd. 85,922
First Abu Dhabi Bank PJSC
FirstrandBank Ltd. 319
HDFC Bank Ltd. 6,36,640
Hongkongand Shanghai Banking Corpn.Ltd. 45,655
ICICI Bank Limited 5,27,145
IDBI Bank Limited 2,04,768
IDFC Bank Limited 49,398
Indian Bank 1,53,120
Indian Overseas Bank 1,51,536
IndusInd Bank Ltd. 1,29,449
Industrialand Commercial Bank of China 839
Industrial Bank of Korea 83
Jammu & Kashmir Bank Ltd. 61,853
JP Morgan Chase Bank National Association 10,209
JSC VTB Bank 12
Karnataka Bank Ltd. 44,917
Karur Vysya Bank Ltd. 44,836
KEB Hana Bank 244
Kotak Mahindra Bank Ltd. 1,61,086
Krung Thai Bank Public Company Limited 5
Lakshmi Vilas Bank Ltd. 25,231
Mashreq Bank PSC 167
Mizuho Bank Ltd. 9,141
Nainital Bank Ltd. 3,463
National Australia Bank 204
Oriental Bank of Commerce 1,62,512
Pt Bank MaybankIndonesia TBK 143
Punjab and Sind Bank 64,273
Punjab NationalBank 4,74,952
Qatar NationalBank SAQ
RBL Bank Limited 37,113
Sberbank 206
SBM Bank (Mauritius) Ltd. 1,266
Shinhan Bank 5,227
Societe Generale 2,582
Sonali Bank 35
South Indian Bank Ltd. 52,184
Standard CharteredBank 72,956
State Bank of India 19,24,592
Sumitomo Mitsui Banking Corporation 6,812
Syndicate Bank 2,19,449
Tamilnad Mercantile Bank Ltd. 22,227
The Bank of Tokyo-MitsubishiUFJ Ltd. 9,821
The DhanalakshmiBank Ltd. 6,409
The Royal Bank of Scotland PLC 115
UCO Bank 1,22,948
Union Bank of India 3,14,474
United Bank of India 68,250
United Overseas Bank Ltd. 807
Vijaya Bank 1,10,622
Westpac Banking Corporation 796
Woori Bank 960
Yes Bank Ltd. 1,72,894
Source: RBI (global operations)

 

 

 

 

 

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