New Delhi: Kingfisher had been failed to repay the loan of 4,022 crore which were mainly borrowed from state-owned banks and emerged as India’s top non-performing asset (NPA). Kingfisher had been owned by Vijay mallya.
Public sector banks recently submitted the list of top non-performing loans to the finance ministry, which has asked them to focus on these large borrowers to dispel the impression that lenders are soft in recovering loans from companies.
Kingfisher had been followed by Winsome Diamond & Jewellery (earlier called Su-raj Diamond) which is on number and had owes banks over Rs 3,200 crore, followed by engineering firm Electrotherm India (over Rs 2,600 crore).
Together, the top 50 defaulters had outstanding of over Rs 53,000 crore at the end of December 2013, the period for which data was submitted to the finance ministry. There were at least 19 companies on the list which had outstanding amount of over Rs 1,000 crore.
For years the government has been talking of cracking down on loan defaulters but there has been limited progress as the borrowers take exploit the legal loopholes to delay repayment.
Finance Ministry reveals with the Data that banks had only managed to recover a little under Rs 1,100 crore, with half the amount coming from Mallya’s Kingfisher Airlines.
It had also been notified that if the entire Rs 53,000 crore is recovered by banks, they would be able to meet nearly quarter of their resource requirement for the next five years. This will reduce the need for the government to sell its shares in the state-run entities to help them meet their capital requirement and also do away with the need for banks to sell their real estate and stake in joint ventures.
Bureau Report
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