Bank Loans: 95 Corporates Have NPAs of Rs5.57 Lakh Crore
Moneylife Digital Team 24 December 2018
While there is a lot of hue and cry over loan-waiver schemes being announced for farmers, just 95 borrowers, excluding individuals and state-run units, have a whopping Rs5.57 lakh crore gross non-performing assets (NPAs).
 
Finance minister Arun Jaitley, in a written reply in the Lok Sabha, stated, "...as per data on borrower groups excluding individuals and government-public sector units, submitted by scheduled commercial banks (SCBs), as on 30 September 2018, there were 568 borrowers who had NPAs of Rs6,28,560 crore, of which 95 were borrowers with aggregate gross NPAs of more than Rs1,000 crore, involving funded outstanding amount of Rs5,57,110 crore."
 
Talking about NPAs in the farm sector, the minister said, "(The) Reserve Bank of India (RBI) has also apprised that gross NPAs in agriculture and allied activities were Rs1,01,508 crore as on 30 September 2018."
 
According to Mr Jaitley, following directions from RBI, cases have been filed under insolvency and bankruptcy code (IBC) before the national company law tribunal (NCLT) against 41 borrowers, 12 of which had cumulative outstanding of Rs1,97,769 crore. The remaining 29 had an outstanding of Rs1,35,846 crore as on 31 March 2017.
 
To resolve issues associated with bulging NPAs of banks, the government has amended SARFAESI Act to make it more effective with provision for three months imprisonment in case the borrower does not provide   asset details. The lenders are also allowed to get possession of mortgaged property within 30 days under the new amendments. 
 
To speed up recovery, the government has set up six new debt recovery tribunals (DRTs). In addition, under the public sector banks (PSBs) reforms agenda, State-run have created stressed asset management verticals for stringent recovery, segregated pre- and post-sanction follow-up roles for clean and effective monitoring, initiated creation of online one-time   settlement platforms and committed to monitoring large-value accounts through specialised monitoring agencies.
 
"Enabled by these measures, as per RBI data on global operations (with provisional data for September 2018), during the last three and a half financial  years, NPAs of SCBs reduced by Rs2,83,770 crore due to recoveries," the minister told the Lok Sabha.
 
Comments
S.B.SINGH
7 years ago
Bribery, Bank Branch Head, Bank Chairman and politicians only responsible
Very deterrent punishment required
MD HABIBUR RAHMAN
7 years ago
Sir please hamko loan chahiye
Dr.Dhananjaya Bhupathi
7 years ago
https://www.moneylife.in/article/bank-loans-95-corporates-have-npas-of-rs557-lakh-crore/55981.html
1. When millions of unemployed youth is roaming on roads, merging banks is not right step. With merger 3 banks, NPAs worth Rs.80000 crores shall be kept under the carpet.
2. Is there any prudent functionary in PMO/UFM/RBI/IBA to avert the strike much to the chagrin of DWINDLING IMAGE OF BJP LEAD NDA? SO THAT THE INDIAN CITIZENRY CAN BE SAVED WITHOUT BANKING SERVICES FOR 5 DAYS.
3. In entire PSBs, 10 lacs bank employees + 5 lac bank retirees , right from Attender to GM, are honest to the core & hard working employees mobilized & accounted for INR.125 lac crores of deposits + Rs.85 lac crores of advances with investments in Govt. Securities worth ts.30 lac crores. However, entire credit goes to GOI, the PSB boards & the dynamic bank employees.
4. The demand/limit for Bank services is THE SKY. If the banks work for 24 hrs/7 days a week on shift system, still customers visit banks.
5. The proposal to merge banks helps the LOOTERS, namely, the fugitives, politicians in power/opposition, crony capitalists, existing PSB boards, CMDs/CEOs/EDs/CORRUPT DUDs OF ADHOCISM IN UFM/PMO/IBA/TICKING MASTERS OF RBI/STATUTORY AUDITORS. How? All the culprits shall escape ‘scot-free’ with their ill-gotten moneys. Entire NPAs worth Rs.80000 crores shall be put under the carpet. SBI & PNB commenced to put NPAs worth Rs.3000 crores to auction without revealing names of the culprit-borrowers on their respective web sites. In compliance to SC judgment, RBI is yet to declare names of NPAs/borrowers worth Rs.50 crores & above.
6. AIBOC, one of UFBU affiliates with majority of PSB/SBI officer-members has already filed a WRIT IN Delhi HC against mergers.
7. A WORD OF CAUTION TO AIBOC + OTHER UFBU + CBPRO AFFILIATES! This CHV sabotaged the entire PSB employees’ momentum in 2007 by taking huge sums of money from PC, the then FM. He, shamelessly, continues to wield power with ‘no elections’ in AIBEA since past decade.
8. What role the CBPRO conveners/affiliates play on behalf of 5 lacs PSB retiree-members. Any Dharnas/Demonstrators proposed HIGHLIGHTING RETIREES' BURNING ISSUES @ all state HQs duly covered by the Press & TV channels. Or simply sleeping by praying the GOD? Anyways, the bankrupt AIBRF is a dead force to reckon with its outdated & OUTLIVED GS.
9. SATYAMAEVA JAYATHE!!!

Rajamanickkam
Replied to Dr.Dhananjaya Bhupathi comment 7 years ago
I do not agree with these remarks. With out the knowledge of bank employees all these frauds could not take place. Why there is no whistleblowers from the banks so for.
Dr.Dhananjaya Bhupathi
Replied to Rajamanickkam comment 7 years ago
Because, most of the frauds involving Rs.25 crores and above loans/advances come under the purview of apex level functionaries, namely,, ED,CMD//CEO/Board of Directors.
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