Top 10 borrowers have taken Rs 28,152 crore bank loans

Govt working on plans to reduce bank NPAs and increase loan recovery

GN Bureau | March 11, 2015


#public sector banks   #non performing assets   #jayant sinha   #finance minister   #defaulters  

Few days back the budget of Rajasthan state was presented with a tax revenue figure of Rs 47096.05 crore. Compare this with the amount that top 10 borrowers have taken loans from public sector banks. These top 10 have to pay a staggering Rs 28,152 crore to the banks. It means almost half a state’s revenue has been lent to only 10 entities.

According to minister of state for finance Jayant Sinha as many as 433 borrowers have taken loans of more than Rs 1,000 crore and above amounting to Rs 16.31 lakh crore. The Reserve Bank of India (RBI) maintains data on borrowers, including corporates, who have borrowed Rs 5 crore and above including non-performing assets (NPAs)  if any, Sinha has said.

Sinha said that to improve the health of the financial sector, reduce the NPAs, improve asset quality of banks and to prevent slippages, the RBI has issued instructions, including designing framework for revitalising distressed assets.

As per the framework, every bank has a board-approved loans recovery policy and it requires a robust mechanism for early detection of signs of distress, including prompt restructuring in the case of all viable accounts.

It has been stipulated to review NPA accounts of Rs 1 crore and above by the Board and top 300 NPA accounts by the management of the board, he said.

Meanwhile, the government is contemplating a host of measures to push stalled projects and deal with the problem of rising NPAs.

"We discussed the NPA issue (and) the situation in stalled projects. There are a variety of measures that we are planning to undertake as far as stalled projects are concerned.

The stalled projects have been adding to the NPAs of the banking sector. The recent Economic Survey had pointed out that unfavourable market conditions and delayed investments in last few years resulted into an 'alarmingly high rate' of increase in stalled projects which, as of December-end, stood at a staggering Rs 8.8 lakh crore.

Comments

 

Other News

Is the AAP headed for a split?

Is the AAP headed for a split?

Bangladesh to get high-speed diesel from Numaligarh refinery

A sale-purchase agreement was signed between Numaligarh Refinery Limited (NRL) and Bangladesh Petroleum Corporation (BPC) for supply of high speed diesel (HSD) through the proposed 131 km Indo-Bangla friendship pipeline.    The agree

Ajay Maken fails to charm Delhi

The dismal performance of the Congress in the Municipal Corporations of Delhi elections forced party chief Ajay Maken to announce his resignation, ending an energetic effort to revive the party in the national capital.   Ajay Maken, now 53, had taken over as the chief

AAP in hot water following MCD poll debacle

The BJP’s clean sweep is not just a referendum on the Arvind Kejriwal government, but also could mark the beginning of the end of one of India’s youngest political parties, the Aam Aadmi Party (AAP). After the Bharatiya Janata Party’s massive win in the UP assembly elections, th

Will make Delhi corruption free: Manoj Tiwari after BJP win

In an interview with Governance Now after BJP’s victory in all the three municipal corporations of Delhi, Delhi BJP president Manoj Tiwari said that the focus will be on sanitation and effort will be to make Delhi free of corruption. What are BJP`s immediate goals a

NBCC to get technology from Poland for energy efficient buildings

In order to jointly promote, develop and adopt external thermal insulation and composite systems (ETICS) solutions technology in construction of highly energy efficient green buildings, NBCC (India) Limited and Bolix, SA of Poland have inked a memorandum of business exploration (MoBE).  



Video

फिर खिला कमल, कांग्रेस-आप का हुआ बुरा हाल

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter