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

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur

Machines communicate, humans connect

There is a moment every event professional knows—the kind that arrives without warning, usually an hour before the curtain rises. Months of meticulous planning are in place. And then comes the call: “We’ll also need a projector. For the slides.”   No email

Why India is entering a ‘stagflation lite’ phase

India’s macroeconomic narrative is quietly shifting—from a rare “Goldilocks” equilibrium of stable growth and contained inflation to a more fragile phase where external shocks are beginning to dominate domestic policy outcomes. The numbers still look reassuring at first glance: GDP


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter