Private lenders and all-India financial institutions (AIFIs) such as National Bank for Financing Infrastructure and Development (NaBFID) will now have access to Central Economic Intelligence Bureau (CEIB) data before sanctioning or renewing loans, similar to public sector banks (PSBs). This decision was taken last month at a meeting of bankers and government officials, people familiar with the development told ET.“It is important for institutions like NaBFID to have access to this information, as they finance high-value infrastructure projects,” said one of the persons cited earlier, adding that this will also resolve the issue where law enforcement agencies need to contact private and foreign banks and other financial institutions for information relating to accounts under investigations.

Private sector lenders had been pressing for this as the CEIB portal can provide credible data on a borrower, the borrower’s business and state of finances. The move brings them on par with state-owned lenders and will aid in faster decision-making.

The CEIB had, last year, launched an “automated search portal” to help PSBs with antecedent verification of prospective borrowers and non-performing assets (NPAs).

Private sector lenders will now be able to access this dedicated portal for obtaining the antecedent verification report, the person cited earlier said.

Sharper verification of a borrower’s antecedents came into focus when the Narendra Modi-led NDA government began a clean-up of banks’ books.In 2015, the finance ministry directed state-run lenders to seek a report from the CEIB on any prospective borrower at the pre-sanction stage, renewal of an existing loan, or non-performing asset (NPA) account for an amount of Rs 50 crore and above. This was reiterated again in 2019, as the emphasis on efficient borrowing continued.In August 2022, at the request of the Indian Banks’ Association, CEIB devised a uniform format for seeking reports and also advised all PSBs to appoint nodal officers as a designated single point of contact (SPoC) to communicate with the bank.

The PSBs’ performance has seen a turnaround with the measures.

As per the latest Financial Stability Report of the Reserve Bank of India, the share of large borrowers in gross non-performing assets (GNPAs) of commercial banks has steadily declined over the last two years. The asset quality of banks’ large borrower portfolios has improved considerably, with the GNPA ratio falling from 4.5% in March 2023 to 2.4% in September 2024. PSBs have posted their highest-ever aggregate net profit of Rs 1.41 lakh crore in the financial year 2023-24.