New Delhi: Wilful defaulters borrowing Rs25 lakh and above owed more than Rs15,490 crore to PNB as of May end, up 2% from the preceding month.
The data from the state-owned Punjab National Bank covers the big wilful defaulters who are not paying back their loans despite having the capacity to do so. These borrowers of PNB had defaulted on loan repayment of Rs15,199.57 crore as on 30 April this year.
For financial year ended March 2018, the bank’s balance sheet had closed with big wilful defaults owing Rs15,171.91 crore. PNB suffered a standalone net loss of Rs12,282.82 crore in 2017-18, as against a profit of Rs1,324.80 crore in 2016-17.
The major defaulters included Kudos Chemie Rs1,301.82 crore; Kingfisher Airlines Rs597.44 crore; BBF Industries Rs100.99 crore; ICSA (India) Ltd Rs134.76 crore; Arvind Remedies Rs158.16 crore and Indu Projects Ltd Rs102.83 crore.
Others included Jas Infrastructure and Power Ltd Rs410.96 crore; VMC Systems Rs296.8 crore; MBS Jewellers Rs266.17 crore; Tulsi Extrusion Rs175.41 crore. These borrowers took loan from PNB through a consortium arrangement of several banks.
The defaulters who took loan solely from PNB were: Winsome Diamonds and Jewellery Rs899.70cr; Forever Precious Jewellery & Diamonds Rs747.97 crore; Zoom Developers Rs410.18 crore; Nafed Rs224.24 crore and Mahua Media Pvt Ltd Rs104.86 crore.
The Indian banking sector, particularly state-owned lenders, is grappling with mounting non performing assets (NPAs) or bad loans as also a host of scams and frauds. NPAs in the banking sector stood at Rs8.31 trillion as of December 2017.
The total bad loan write-off by the public sector banks stood at over Rs1.20 trillion in the last fiscal, with SBI bearing the burnt at Rs40,196 crore, nearly 25% of the total write-offs during 2017-18. This was followed by Canara Bank (Rs8,310 crore), PNB (Rs 7,407 crore) and Bank ofBaroda (Rs4,948 crore).
Scam-hit PNB which has suffered a fraud of Rs14,357 crore allegedly carried out by jewellery designer Nirav Modi and his associates, witnessed a sharp deterioration in its asset quality with gross loans mounting to 18.38% of gross advances at the end of March 2018, as against 12.53% a year ago. Net NPAs also soared to 11.24% against 7.81% year ago.
In absolute terms, the gross NPAs of PNB surged to Rs86,620 crore in the fourth quarter as compared to Rs55,370 crore in same quarter a year ago. Similarly, the net NPA also rose to Rs48,684.29 crore from Rs32,702 crore at the end of March 2017.