Around 14% of the bad loans in public sector banks (PSBs) are due to wilful defaulters. The total gross non-performing assets (NPAs) of 21 PSBs stood at Rs 7.33 lakh crore as on September 30, 2017. Of this, Rs 1.01 lakh crore of loans were termed as those in wilful default.
Some borrowers with no intention of paying back their loans are using their children to conceal their assets from banks during insolvency proceedings, forensic experts told ET.
Finance ministry asks public sector banks to close loss-making branches
The finance ministry has asked PSBs to discuss consolidation of overseas branches and take a final call on closing some unviable operations.
The government is already struggling to deal with the problem of mounting NPA in the public sector banks and has drawn a mega recapitalisation plan to strengthen them.
The recapitalisation bonds will not be inflationary and will be cash neutral, says Department of Financial Services (DFS) Secretary Rajiv Kumar
NEW DELHI: Gross Non-performing Assets (NPAs) of banks crossed Rs 8.50 lakh crore at the end of September 2017, Minister of State for Finance Shiv Pratap Shukla informed the Lok Sabha.
A majority of companies on RBI’s second list of loan defaulters, including Monnet Power and Visa Steel, will be referred to NCLT for bankruptcy proceedings
The assets of some of the 40 top defaulters (12 in the first list and 28 in the second) are likely to be sold over the next few months as RBI and the government push lenders to speed up the resolution of Rs10 trillion of soured loans.
Prime Minister Narendra Modi on Wednesday sought to allay the fears of bank account holders, saying their deposits in banks will be safe and their interests would not be harmed in any way.
Aadhaar-bank account linkage: Govt extends deadline to March 31.
In August, the Reserve Bank had asked banks to either resolve 28 more large stressed accounts by tomorrow or refer them to the NCLT by December 31.These 28 accounts together account for 40 per cent of the system wide bad loans or worth around Rs 4 trillion.