Defaulters in India accounted for 1.50 trillion rupees. State Bank of India alone accounted for nearly a third of them.
This figure of wilful defaulters is classified by India’s state-owned banks in the fiscal year of 2018-19. Finance minister, Nirmala Sitharaman had put forth the numbers in the Parliament.
- Indian law classifies firms or individuals who own large businesses and deliberately avoid repayments as wilful defaulters
- The biggest lender, State Bank of India, saw the most number of wilful defaults at 461.58 billion rupees.
- Coming in at a close second, Punjab National Bank accounted for 250.9 billion rupees and Bank of India saw 98.9 billion rupees in wilful defaults.
- RBI data suggests that 632.8 billion rupees come in as gross loans and advances in state-run banks.
Modi-led government’s take on defaulters
Now fugitives, Nirav Modi and Mehul Choksi along with aviation tycoon Vijay Mallya were star defaulters who fled the country following repayment defaults.
Banks & other financial institutions don’t sanction any additional facilities to defaulters because of they are prevented from raising funds and launching new ventures.
Over the last three financial years, 1,475 police complaints were lodged by public sector banks. Each of them were against defaulters, said FM Nirmala Sitharam in the parliament.