Info bank of large borrowers to be set up

Individuals and entities with exposure of over Rs 10 crore would be reported to the central bank

The Reserve Bank of India (RBI) would create a central repository of borrowers with an exposure of more than Rs 10 crore. The database would include individuals, as well as entities.

In a circular to banks, the central bank said it was necessary to build a repository of large credits and share the information with banks. “It has been decided to use the information supplied by banks through the return on large borrowers (form A), which captures the system-wide exposure of individuals and entities with exposure (both fund and non-fund based) of more than Rs 10 crore for creation of a central repository of large credits across banks,” the circular said.

After taking charge as RBI governor, Raghuram Rajan had announced the central bank planned to create a central repository of large exposures. “This (repository) will enable banks to be aware of building leverage and common exposures,” he had said.

RBI collects the data from banks and non-submission of data or wrong reporting attracts penalties under the banking regulations Act. “Banks are advised to take utmost care about data accuracy and integrity, while submitting the data on large credit to RBI. Failing this, penal action would be undertaken,” RBI said.

Gross non-performing assets (NPAs) of public sector banks rose to Rs 1.76 lakh crore at the end of June, against Rs 1.55 lakh crore at the end of March. For commercial banks, the ratio of gross NPAs to gross advances rose from 2.36 per cent in March 2011 to 3.92 per cent in June 2013.