Four-fold rise in bad loans

AIBEA criticises corporates, says depositors have the right to know the details of loan defaulters

GN Bureau | May 7, 2014



A whopping Rs 70,300 crore has accumulated on the account of top 406 bad bank loans even as there has been a four-fold rise in such loans in the past four years.

With a bad loan of Rs 2,673 crore, the now grounded Kingfisher Airlines tops the list of defaulters released by the All India Bank Employees’ Association (AIBEA) on Tuesday.

Kingfisher is followed by Winsome Diamond and Jewellery Co. (Rs 2,660 crore), Electrotherm India (Rs 2,211 crore), Zoom Developers Private Limited (Rs 1,810 crore), Sterling Bio Tech (Rs 1,732 crore), S Kumars Nationwide (Rs 1,692 Crore), Surya Vinayak Industries (Rs 1,446 crores), Corporate Ispat Alloys (Rs 1,360 Crore), Forever Precious Jewellery and Diamonds (Rs 1,254 crore), Sterling Oil Resources (Rs 1,197 crore) and Varun Industries (Rs 1,129 crore).

Speaking to reporters in Chennai, AIBEA general secretary CH Venkatachalam demanded that the RBI should come up with periodic list of loan defaulters of Rs one crore and above; Centre shall amend recovery laws, and take criminal action against those who appear to be defaulting wilfully.

From Rs 39,030 crore in March 2008, bad loans rose to Rs 1.64 lakh crores by March 2013.

Venkatchalam alleged that the AIBEA had to release the list as the RBI and the Centre had been shying away from it.

AIBEA alleged that the big corporates were playing with depositors’ hard-earned money and pointed that the latter have the right to know the details of wilful defaulters.

Comments

 

Other News

What the US–Iran peace deal means for India

After months of rising tensions, the United States and Iran have reached a memorandum of understanding called the "Islamabad Agreement." This agreement allows for the immediate reopening of the Strait of Hormuz without tolls and provides Iran with relief from sanctions, depending on its complianc

V. M. Tarkunde: A legal luminary par excellence

14 Lawyers: Portraits from The Bar By Raju Ramachandran  Juggernaut, 248 pages, Rs. 799  

The Cost of Obesity

The latest episode of Checks and Balances focuses on the ticking time bomb of obesity in India, and Geetanjali Minhas of Governance Now spoke with a panel of experts. You can watch the episode here: https://youtu.be/mH

US-Iran deal: Path to peace or prelude to deeper regional quagmire?

In the midst of deep mistrust, the US and Iran are reported to have reached a framework deal for ending the West Asian conflict. But whether it will result in any meaningful breakthrough or pave the way for any lasting peace in the region, is in the realm of speculation.   During

Lived life, philosophy, spirituality and other enigmas

The Ashes Are Warm: Memories of a Lifetime Spent with UG Krishnamurti By Mahesh Bhatt and Sunita Pant Bansal Rupa Publications, 384 pages, Rs 495  

In Varanasi, fringe expansion vs. core heritage

For centuries, the urban framework of Varanasi was defined not just by its relationship with the sacred Ganga but by its multifaceted network of urban commons. Historic kunds, seasonal talabs (ponds), and open maidans served as the city’s basic ecological infrastructure. Th





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter