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Wilful defaulters of state-run banks rose by 12% last fiscal

Recovery of Rs 7,654 crore has been done from wilful defaulters' accounts during the last five financial years.

ET Bureau|
Updated: Jun 25, 2019, 07.16 AM IST
Heads of PSBs have also been empowered to request for issuance of look out circulars against wilful defaulters
NEW DELHI: The number of borrowers declared as wilful defaulters by nationalised banks increased by 12% in the last fiscal when lenders added more than 1,000 customers to the list, the finance ministry informed the Lok Sabha on Monday.

State-run banks had 8,582 wilful defaulters as of the end of the year ended March against 7,535 a year earlier, the government said.

As much as Rs 7,654 crore have been recovered from wilful defaulter accounts during the last five financial years, finance minister Nirmala Sitharaman said in a reply to a question in the house.

Till March 2019, suits for recovery have been filed in 8,121 cases and that criminal proceedings have been initiated in 2,915 cases, the government said in a statement.

“Additionally, for effective action against wilful defaulters fleeing Indian jurisdiction, the Fugitive Economic Offenders Act, 2018 has been enacted to provide for attachment and confiscation of property of fugitive offenders and has disentitled them from defending any civil claim,” it said.


In a separate statement, the government noted that as a result of transparent recognition of stressed assets and subsequent initiatives of the government – recognition, resolution, recapitalisation and reforms – bad loans for public sector banks have declined by Rs 89,189 crore to Rs 8.06 lakh crore as on March 2019. Non-performing assets of PSBs had increased to Rs 8.95 lakh crore in 2018 from Rs 2.79 lakh crore in March 2015.

“PSBs have recovered Rs 3.59 lakh crore over the last four financial years, including record recovery of Rs 1.23 lakh crore during 2018-19,” it said, adding that provision coverage ratio, or PCR, has increased from 46% in March 2015 to 74.2% in March 2019.

The country’s largest bank, State Bank of India has lending worth Rs 1.76 lakh crore classified as NPA as of March 2019, it said.


In another statement, the government informed the lower house of the parliament that state-run lenders have written off loans worth Rs 36,377 crore in the last fiscal.

The year-on-year rise in recoveries and recapitalisation in PSBs during 2018-19 was much faster than the rise in write-off figures on bank loans, it said.

The government noted that over the last five fiscal years, PSBs have been recapitalised to the extent of Rs 3.19 lakh crore, with infusion of Rs 2.5 lakh crore by the government and mobilisation of over Rs 66,000 crore by the banks themselves.

The government also informed that 980 ATM fraud cases worth Rs 1 lakh and above amounting to Rs 21.36 crore were reported in 2018-19.

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Government empowers PSU banks to seek lookout circulars against wilful defaulters

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