The number of wilful defaulters in the banking system has more than tripled over the past decade, with the total outstanding amount ballooning to ₹3.83 lakh crore as of March 2025, the government informed Parliament recently.
Replying to a question in the Lok Sabha, Finance Minister Nirmala Sitharaman said data compiled by the Reserve Bank of India (RBI) shows that the number of wilful defaulters rose from 5,076 in March 2014 to 18,318 in March 2025.
During the same period, the total amount outstanding surged from Rs 39,369 crore to Rs 3,83,264 crore, reflecting a sharp rise in bad loans linked to such borrowers. The data is based on information provided by TransUnion CIBIL and covers accounts of Rs 25 lakh and above.
The government also shared details of the top wilful defaulters over the years. In recent years, companies such as ABG Shipyard Ltd and Gitanjali Gems Ltd have consistently featured among the largest defaulters. As of March 2025, ABG Shipyard topped the list, followed by Gitanjali Gems and Beta Napthol Ltd.
On whether wilful defaulters can settle dues through compromise, Sitharaman said banks are allowed to enter such settlements to maximise recovery without delaying resolution. However, such settlements are subject to board approval and do not halt criminal proceedings.
The RBI’s framework permits compromise settlements under its stressed asset resolution guidelines, while imposing restrictions such as a cooling-off period before fresh lending. The government added that wilful defaulters face stringent curbs, including denial of additional credit, restrictions on raising funds from capital markets, and potential criminal action.
The minister told Parliament that banks have been instructed to extend no additional credit facility to wilful defaulters or any entity with which the wilful defaulter is associated. Further, wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise funds.