Active Stocks
Tue Mar 19 2024 14:21:04
  1. Tata Consultancy Services share price
  2. 3,980.00 -3.97%
  1. Tata Steel share price
  2. 149.15 -0.30%
  1. Bharti Airtel share price
  2. 1,232.80 0.63%
  1. Power Grid Corporation Of India share price
  2. 259.50 -2.08%
  1. ITC share price
  2. 409.45 -1.90%
Business News/ Industry / Banking/  Wilful defaults in India cross 1.5 trillion in 2018-19
BackBack

Wilful defaults in India cross ₹1.5 trillion in 2018-19

Wilful defaulters are classified as firms or individuals who own large businesses and deliberately avoid repayments
  • The State Bank of India saw the highest number of wilful defaults at ₹46,158 crore
  • Public-sector banks filed 1,475 police complaints against wilful defaulters in the last three financial yearsPremium
    Public-sector banks filed 1,475 police complaints against wilful defaulters in the last three financial years

    MUMBAI : India's state-owned banks had classified 1.50 trillion worth of loans as "wilful defaults" in 2018-19, with the biggest lender State Bank of India accounting for nearly a third, the finance minister said in the parliament.

    Under Indian law, wilful defaulters are classified as firms or individuals who own large businesses and deliberately avoid repayments.

    The State Bank of India saw the highest number of wilful defaults at 46,158 crore, while Punjab National Bank stood second at 25,090 crore, with Bank of India at 9,890 crore, Finance Minister Nirmala Sitharaman said in a written reply to queries in the parliament on Tuesday.

    According to data from the Reserve Bank of India (RBI), gross loans and advances in state-run banks came in at 63,820 crore , as of March 31, 2019.

    The Narendra Modi-led government has been tightening norms against wilful defaulters especially after Indian aviation tycoon Vijay Mallya, fugitive billionaire jeweller Nirav Modi and his uncle Mehul Choksi fled the country following repayment defaults.

    Wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and they are debarred from launching ventures for five years.

    The government has debarred wilful defaulters and companies with wayward borrowers from accessing capital markets to raise funds or participate in insolvency resolution process.

    Bank chiefs can also authorise look-out notices for defaulters to prevent them from leaving the country.

    Public-sector banks filed 1,475 police complaints against wilful defaulters in the last three financial years, the finance minister added.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 02 Jul 2019, 06:59 PM IST
    Next Story footLogo
    Recommended For You
    Banking Stocks
    ₹1,061.35-1.14%
    ₹1,446.2-0.28%
    ₹1,081.2-0.11%
    ₹120.05-2%
    ₹730.7-0.54%
    Switch to the Mint app for fast and personalized news - Get App