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

BJP does well in Gujarat, show exit polls

BJP is all set to retain Gujarat, indicated one exit poll. Another exit poll, however, showed a tough fight in at least one region. Aaj Tak exit poll showed that BJP will win 99 – 113 seats, getting a majority in the 182 member assembly. The Congress will get 68 – 82 seats, falli

GSL delivers fuel barge to Indian navy

Goa shipyard Limited (GSL) has delivered the second fuel barge to Indian Navy on December 2, 33 days ahead of contractual delivery schedule, and recently got inducted into the Navy. Navy was in the need of self-propelled 1000Ton fuel barges, with a view to fuel big ships like INS Vikramadity

HAL units can’t be allowed to be idle: Bhamre

 Minister of state for defence Subhash Bhamre has assured Hindustan Aeronautics Ltd (HAL) that work load for its Nashik unit will continue to flow even after Su-MKI manufacturing and production activities conclude in the next few years.  “HAL has the world class facilities and giv

INS Kalvari dedicated to the nation by PM

 Naval submarine INS Kalvari was dedicated to the nation by prime minister Narendra Modi on Thursday in Mumbai. INS Kalvari is a diesel-electric attack submarine built by the Mazagon Dock Shipbuilders Ltd for the Indian Navy. As per the plan, five more such submarines would be inducted into

Gujarat decides

People queued up since early morning to cast their ballot to decide the political fate of 851 candidates in the second and final phase of the bitterly fought Gujarat assembly elections. The votes in all the 182 seats will be counted on December 18. Over 22 million people are eligible to cast

Delhi’s air pollution answer may lie in distant Iceland

Had the situation not been so desperate, then the AAP government’s proposal to sprinkle water from helicopters would have been considered hare-brained. But, a more practical solution to tackling air pollution may well be around the corner and it lies in the success of a pilot project in Iceland.



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter