Bad loans rise six-fold in last five years

Bank employees list out 400 defaulters 

owing Rs 70,000 cr to banks

Chennai:

The bad loans in 24 public sector banks has risen six-fold in the last five years from Rs 39,000 crore to Rs 2.36 lakh crore, according to All India Bank Employees Association.

Interestingly, the figures released by AIBEA states that the bad loans from March 2008 to March 2013 rose four times from Rs 39,000 crore to Rs 1.64 lakh crore. Surprisingly, in the next six months the quantum of bad loans rose by 72,000 crore.

“This is a cause of great concern for us. Since the Rserve Bank of India or the government is not publishing the list of loan defaulters, AIBEA is publishing the list containing the names of top 400 defaulters of public sector banks,” All India Bank Employees Association general secretary C H Venkatachalam said.

He also said that bad loans in 172 corporate accounts (Rs 100 crore and above) is Rs 37,000 crore.

“We will soon be furnishing the details of loan defaulters state-wise and if the government won’t take action, then we will come up with a list of 3,000 defaulters besides staging demonstration in front of the defaulting industries,” Venkatachallam said.

Releasing the list of 406 companies that have defaulted on the loans, Venkatachalam said that the bad loans of top 400 defaulters of public sector banks is 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. It owes Rs 938.48 crore to seven banks.

The other major companies from the state include Paramount Airways which owes Rs 304.02 crore to Andhra Bank and Bank of India and Subiksha Trading which owes Rs 74.99 crore to Bank of Baroda. The list also has Vanniar Education Trust which owes Rs 19.02 crore to Indian Bank.

The list also has Chennai Elevated Tollway which owes Rs 46.67 crore to United Bank of India besides New Chennai Township which owes Rs 233.45 crore to State Bank of Hyderabad and Central Bank of India.

The others in the list include PRP Exports (Rs 120.4 crore), Sakthi sugars (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).

Venkatachallam said that the bad loans restructured and shown as good loans is Rs 3.25 lakh crore. He said 1.4 lakh crore profit of banks were transferred and adjusted for provisions towards bad loans from the period between 2008-13.

“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.