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Defaulters owe 27% of total bad loans to SBI alone, PNB next

Defaulters owe the State Bank of India around Rs 25,104 cr

Press Trust of India  |  New Delhi 


Country's largest lender accounts for over 27 per cent of the total amount owed to public sector by wilful

As many as 1,762 wilful owed Rs 25,104 crore to as on March 31, putting pressure on its balance sheet.

(PNB) is next on the list with 1,120 wilful having outstanding non-performing assets (NPAs) or bad loans of Rs 12,278 crore.

Together these two account for Rs 37,382 crore or 40 per cent of the total outstanding loans.

Total outstanding loans due to public sector by wilful defaulters amounted to Rs 92,376 crore, according to the Ministry data.

The total outstanding loans by wilful defaulters rose to Rs 92,376 crore at the end of financial year 2016-17, from Rs 76,685 crore at the end of last fiscal 2015-16 -- up 20.4 per cent.

At the same time, there has been close to 10 per cent increase in the number of wilful defaulters on annual basis. It increased to 8,915 at the end of March as against 8,167 in the previous fiscal.

Out of 8,915 cases of wilful defaults, banks have filed FIR (First Information Report) in 1,914 cases with outstanding loans of Rs 32,484 crore.

During 2016-17, 27 public sector banks, including and its five associates had written off Rs 81,683 crore, the highest in the last five fiscals. The amount was 41 per cent higher than that in the previous fiscal.

Gross of the public sector banks rose to Rs 6.41 lakh crore at the end of March 2017 as against Rs 5.02 lakh crore a year ago.

In order to check incidences of wilful default, RBI has tightened the norms and made it clear that promoter of the defaulting company cannot escape from his responsibility even if he is not a whole time director.

As per earlier guidelines, a bank couldn't label a non- whole-time director of a company as a wilful defaulter unless there was conclusive evidence that the individual was aware of the wilful default by the company and had not objected to it.

A wilful default occurs when a borrower doesn't honour an obligation despite having the capacity to pay or syphons off funds by disposing of assets without the knowledge of the bank, according to RBI.

RBI has allowed banks to name and shame wilful defaulters by publishing their photographs.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, August 21 2017. 09:18 IST