Business Mantra News
- It is really dreadful that around 14% of the bad loans in Public Sector Banks PSBs are due to Willful Default of the borrowers.
- As per reports, total Non-Performing Assets of the 20 PSBs stood at Rs.7.33 Lacs Crores and out of which 1.01 Lakh Crore NPAs were due to willful defaulters.
- A willful defaulter is that defaulter who owes a debt and do not repay it despite having means to pay or divert the funds to be utilized for objectives other than that of the purpose for which the loan was granted.
- It is a long legal battle for banks to recover money from these willful and deliberate defaulters.
- Vijay Malya remains much in new for sharing the category of ‘willful defaulters’ who did not repay loans of Rs.9000 Crores to Banks and fled to UK to escape from the liability.
- Some of the largest cases of willful defaulters are Kingfisher Airlines, Raza Textile Limited, Rank Industries Limited and Zoom Developers Pvt. Ltd.
- As per the data released by RBI, Vijay Malya has the highest share in list of willful defaulters.
- Punjab National Bank also topped the list of willful defaulters among the other larger PSUs.
- Last month, PNB have recognized around 904 companies as being willful defaulters and initiated recovery proceeding against them.
- Once a company or individual has been declared as “willful Defaulter”, it will not get Bank loan till the tag of “willful Defaulter” is
- Report says that Banks shares approximately 77% of the total gross NPA of the corporate houses.
- While Bank of Maharashtra and Syndicate Bank have smallest percentage of willful defaulters.
The Finance Minister Mr. Arun Jaitley said that strict action will be initiated against willful defaulters by investigating agencies and Banks will recover every single penny of loan given to debtor companies/individuals etc.