Friday, July 06, 2012

Almost Five Million Borrowers are Defaulters

'49 lakh debtors default on Rs 1 lakh cr'
Over 49 lakh debtors have defaulted in repaying loans totalling more than Rs one lakh crore from various nationalised banks in the country, an RTI query has revealed.
The information was provided by individual banks to Om Prakash Sharma, an RTI activist and a former National Council member of BJP.
The State Bank of India tops the list accounting for 32 percent of the total defaulted amount and 36.3 per cent of the defaulters.
A compilation of the information received indicated that the debtors numbered 49,24,611 and the defaulted amount was to the tune of Rs 1,00,155 crore.
The State Bank of India has a total of 17,88,125 defaulters and the amount involved is Rs 32,534 crores.
Punjab National Bank stands second with Rs 9632 crores in default, accounting for 0.09 percent of the total defaulted amount, followed by Union Bank of India where the debtors have not repaid Rs 7615 crore.
As regards the number of defaulters, Union Bank of India comes second with a total of 5,50,733 defaulters followed by Bank of India which has 3,43,220 defaulters.
There are six banks where the defaulted amount is between Rs 3000 and Rs 4000 crore, four banks where it is between Rs 2000 and Rs 3000 crore, seven where default is between Rs 1000 and Rs 2000 crore and three with less than Rs 1000 crore.
It was revealed that there were 969 debtors who defaulted in repaying loans over Rs 10 crore each, adding up to around Rs 27,000 crore.
The State Bank of India has 370 Non-Performing Assets, while Bank of India has 139 and Union Bank of India 93.

‘There is a lack of professionalism in the rating of borrowers’


The banking sector has been under pressure with rising non-performing assets through the last year. Mr Sarkar gives his views on some of these issues in this interview. Excerpts:

On the NPA situation

Some of the big accounts are under stress. NPAs are certainly a cause of concern. We have reduced rates for SMEs, as in some cases the rate of interest appears to be quite high. This is because the accounts are not rated and the internal rating also differs with each bank.

In some cases, the balance-sheet of the SME is not strong while some have less internal capacity. There is a lack of professionalism in the rating of the borrowers. Therefore, firstly, some sort of counselling is required. Secondly, supervision cost is also high. Therefore, banks must screen the borrowers properly.
http://www.thehindubusinessline.com/industry-and-economy/banking/article3616820.ece?homepage=true&ref=wl_home

Nearly 5 mn in default of Rs 1 lakh crore to PSBs
Press Trust Of India / Thane Jul 06, 2012, 00:58 IST
Nearly five million debtors have defaulted in repaying loans totalling a little more than Rs 1 lakh crore from various nationalised banks in the country, a right to information query has revealed.


The information was provided by individual banks to Om Prakash Sharma, an RTI activist and a former National Council member of the Bharatiya Janata Party.


The State Bank of India tops the list, accounting for 32 per cent of the total defaulted amount and 36.3 per cent of the defaulters. A compilation of the information received indicated the debtors numbered 49,24,611 and the defaulted amount was Rs 1,00,155 crore.



The State Bank of India has a total of 17,88,125 defaulters and the amount is Rs 32,534 crore. Punjab National Bank stands second with Rs 9,632 crore, accounting for 0.09 per cent of the total defaulted amount, followed by Union Bank of India with Rs 7,615 crore.


As for the number of defaulters, Union Bank of India is second (5,50,733) after Bank of India, 3,43,220. There are six banks with amount between Rs 3,000 and Rs 4,000 crore, four with between Rs 2,000 and Rs 3,000 crore, seven with between Rs 1,000 and Rs 2,000 crore and three with less than Rs 1,000 crore.


It was revealed there were 969 debtors who defaulted in repaying over Rs 10 crore each, adding up to Rs 27,000 crore. The State Bank of India has 370 non-performing assets, while Bank of India has 139 and Union Bank of India 93.
http://www.business-standard.com/india/news/nearly-5-mn-in-defaultrs-1-lakh-crore-to-psbs/479571/

1 comment:

Himadri said...

It is a shame to learn that, our brilliant bank officers, promoted to cushy designations and cadres of senior managers, chief managers, etc. could make such a brilliant score in making recoveries of loans. This can be attributed to two reasons,
1. Getting promotions through mollycoddling and
2. Sanctioning of loans through quid pro que arrangements.