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Big borrowers who defaulted got loans again from govt. banks
Lucknow: The latest report of the Reserve Bank of India has made a startling disclosure that 100 big borrowers accounted for 20 per cent of total loans given by private and public sector banks. in the country and that most of them were either wilful or non-wilful defaulters.
What is worse, the share of these borrowers instead of coming down has gone up which speaks volumes against the financial management of the banks..
In September last, for instance,their share was 56.8 per cent of the total loan which increased to 58.8 per cent in March this year.The biggest lender was the State Bank of India which had given out as much as Rs 42,000 crores. The top borrowers included Kingfisher airlines which was provided loan of the order of about Rs 2600 crores.
In view of large number of bad loans, the Non-profitable asset or NPA of public sector banks rose from zero point seven per cent to 19.3 per cent. Most of these borrowers had contributed to this increase in percentage.Restructuring of the loans by the banks in view of the new guidelines of the RBI, has also contributed to it. Largely, however,bad financial management is responsible for the higher NPA percentage.
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