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Big Biz Defaults Total Rs 70K Crore, KFA Tops List

 As many as 24 public sector banks have registered a massive six-fold increase in bad loans in the last five years from `39,000 crore to Rs 2.36 lakh crore, according to the All India Bank Employees Association (AIBEA).

Published: 07th May 2014 08:31 AM  |   Last Updated: 07th May 2014 08:38 AM   |  A+A-

 As many as 24 public sector banks have registered a massive six-fold increase in bad loans in the last five years from Rs 39,000 crore to Rs 2.36 lakh crore, according to the All India Bank Employees Association (AIBEA).

The figures released on Tuesday reveal that banks witnessed a four-fold rise in bad debts from Rs 39,000 crore to Rs 1.64 lakh crore from March 2008 to March 2013. In the subsequent six months, the quantum of bad loans rose by a whopping Rs 72,000 crore.

“This is a cause of great concern for us. Since neither the Reserve Bank of India nor the government is prepared to publish the list of defaulters, AIBEA has come out with the list containing top 400 defaulters,” said AIBEA general secretary C H Venkatachalam, justifying the disclosure at a media briefing. According to him, bad loans of 172 corporate accounts (Rs 100 crore and above) amount to Rs 37,000 crore.

“We will soon be furnishing the details of loan defaulters state wise and if the government fails to take action, then we will come up with a list of 3,000 defaulters, besides staging demonstrations in front of the defaulting industries,” Venkatachalam said.

Releasing the list of 406 companies that have defaulted on the loans, he said the bad loans of the top 400 errant firms total Rs 70,300 crore.

The biggest defaulter in the list is Kingfisher Airlines, which owes Rs 2,673.24 crore to 10 banks. 

Among the companies from Tamil Nadu, Orchid Chemicals is the biggest defaulter which owes Rs 938.48 crore to seven banks. The other major companies from the state include Paramount Airways (Rs 304.02 crore), Subiksha Trading (Rs 74.99 crore), Vanniyar Education Trust (Rs 19.02 crore), Chennai Elevated Tollway (Rs 46.67 crore), New Chennai Township (Rs 233.45 crore), PRP Exports (Rs 120.4 crore), Sakthi Sugars (Rs 97.85 crore), Siva Industries and Holdings (Rs 45.63 crore) and Siva Ventures Ltd (Rs 175 crore) and Tidel Park Coimbatore (Rs 121.50 crore).

Venkatachalam said bad loans restructured and shown as good loans stood at Rs 3.25 lakh crore. He said Rs 1.4 lakh crore from profits was transferred and adjusted towards the unpaid loans. “Why these loans are not coming back? Who is responsible and accountable? If there is a political nexus, it should be exposed. People should not be punished for corporate default,” he said.

 

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