Punjab National Bank admits staggering loan defaults of Rs 25,000-crore
The beleaguered public sector Punjab National Bank (PNB) has admitted to 1,142 big and small defaulters all over India who have defaulted a stupendous Rs 25,090.3 crore.
 
Of these 1,142, the PNB has so far initiated recovery proceedings by filing suits against 1,108 defaulters to recover Rs 23,879.8 crore.
 
However, no suits have been filed against the remaining 34 defaulters who owe the bank Rs 1,210.5 crore.
 
As is mandatory, the RBI has been informed of the status of all these messy accounts -- some of them several years old and recoveries still pending from them -- as on March 31, 2019.
 
The veritable ‘hit-list' prepared by the country's second largest PSB covers all defaulters owing PNB Rs 25 lakh and above, through all its branches in all states, with the highest numbers emerging from Maharashtra, Punjab, Delhi, Chandigarh, Gujarat, Uttar Pradesh and West Bengal.
 
Mysteriously, some companies which availed of loans are shown as registered abroad, while others which are registered in India have taken loans from the PNB from its overseas branches.
 
Interestingly, the list of debt-dodgers goes beyond the duo of absconding diamantaires Nirav D. Modi and Mehul C. Choksi - whose scams worth around Rs 14,000-crore first brought the PNB imbroglio into the limelight in early 2018.
 
Also figuring in the list is another high-profile absconder, Vijay Mallya, who owes Rs 597.4 crore on the defunct Kingfisher Airlines account.
 
The other defaulters include Kudos Chemie Ltd., Chandigarh (Rs 1,301.8 crore), Winsome Diamonds & Jewellery Ltd. Surat (Rs 899.7 crore), Jas Infrastructure & Power Ltd., Kolkata (Rs 410.9 crore), Zoom Developers Pvt. Ltd. Mumbai/Indore (Rs 410.1 crore).
 
A few defaulters like Kingfisher Airlines, Winsome Diamonds & Jewellery Ltd, Kudos Chemie Ltd. and Zoom Developers Pvt. Ltd. are currently being investigated by the Central Bureau of Investigation (CBI).
 
When contacted by IANS, PNB officials declined to comment on the list of defaulters.
 
Recently, the PNB has initiated proceedings to recover around USD 13 million from the Tarapur Textile Park Ltd., Palghar (Maharashtra), which availed the loans from PNB's London branch.
 
According to official sources, now the PNB is planning to hand over the case to both CBI and the Serious Frauds Investigation Office (SFIO) and invoke the guarantees provided by TTPL's Chairman Arunkmar Muchhala, and the directors Ritika Muchhala and Trinkal Muchhala.
 
With reference to this instance, the buzz in banking circles is - how companies registered in India availed massive loans from PNB's foreign branches, and similarly, how companies registered on foreign shores were granted loans from the bank's Indian branches, without the connivance of certain officials.
 
The All India Bank Employees Association General Secretary C. H. Venkatachalam termed as "a very serious matter that one bank has such a massive number of defaulters of public money".
 
"Plus, it is not confined to one bank and all banks have such bad loan accounts. A bulk of defaulters are corporates or big companies and a forensic audit of all should be carried out. Why can't the bank file criminal cases against the big-time willful defaulters instead of merely civil suits which can drag on for years," Venkatachalam told IANS.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Sunil shenava

    2 months ago

    Hardly anyone highlights these facts...

    what\'s the RBIs control over the banks..

    it seems everyone pushes the dirt under the carpet...so much so that it has piled up and now cannot be hidden...

    Ramesh Poapt

    2 months ago

    OMG!!!

    DHFL clears Rs 961 crore interest on NCDs
    Dewan Housing Finance Ltd (DHFL) on Tuesday paid its interest dues worth Rs 961 crore on non-convertible debentures (NCDs), exactly a week after it delayed its interest payment.
     
    The delay in interest payment had raised concerns of a liquidity crisis among the non-banking financial companies (NBFC).
     
    "The company has made interest payments in lieu of Rs 961 crore as committed to its debenture holders. With this tranche, the company confirms full payment and will seek rating upgrades from agencies," the company said in a regulatory filing.
     
    It further said that since September 2018, the company has managed to make liabilities payment of over Rs 36,000 crore without availing any fresh funding from the lenders. 
     
    "The company reaffirms that it is committed to meeting all future debt servicing obligations in a timely manner, through further asset monetisation plans as well as onboarding of a strategic partner for its business," DHFL added.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Moody's puts Yes Bank ratings under review for downgrade
    US credit rating agency Moody's on Tuesday placed Yes Bank's ratings under review for downgrade on the back of ongoing liquidity pressures which are expected to negatively impact the lender's credit profile.
     
    In line with their assessment, Moody's Investors Service put Yes Bank's foreign currency issuer rating of Ba1 under review for downgrade.
     
    "Moody's has also placed the bank's long-term foreign and local currency bank deposit ratings of 'Ba1, foreign currency senior unsecured MTN program rating of (P)Ba1, and Baseline Credit Assessment (BCA) and adjusted BCA of ba2' under review for downgrade," the ratings agency said in a statement.
     
    Besides, Moody's placed the bank's 'Counterparty Risk Assessment of Baa3(cr) or P-3(cr)' and domestic and foreign currency 'counterparty risk rating (CRR) of Baa3 or P-3' under review for downgrade.
     
    "The review for downgrade takes into account Moody's expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank's sizeable exposure to weaker companies in the sector," the statement said.
     
    The ratings agency noted that at the end of March 2019, Yes Bank's exposure to Indian housing finance companies (HFC) and non-bank finance companies (NBFC) represented 6.4 per cent of its total exposure.
     
    As per the statement, the lender had a 7 per cent direct exposure to the commercial and residential real estate sector. This sector is also under pressure due to the worsened liquidity conditions.
     
    "In April 2019, the bank classified about Rs 100 billion of its exposures, representing 4.1 per cent of its total loans under the watchlist, that could translate into non-performing loans over the next 12 months," the statement said.
     
    "Nevertheless, the impact will be somewhat cushioned by the bank's proactive loan loss provisioning for anticipated stress," the statement added.
     
    In the fiscal year ended March 2019, the bank made loan loss provisions of about 20 per cent for the loans on the watchlist.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Ramesh Poapt

    2 months ago

    'yes bank' to 'no bank'!!!

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