Take firm steps to recover loans of sick firms from affluent promoters: FM to Banks

March 28, 2013

Sending out warning to willful defaulters, Finance Minister P. Chidambaram asked banks to take bold steps against affluent promoters to recover loans from sick companies owned by them.

The warning comes in the backdrop of several entities, including Vijay Mallya’s Kingfisher Airlines, being unable to repay bank loans.
Gross NPAs of PSU banks have grown from Rs.71,080 crore as on March, 2011, to Rs.1.55 lakh crore as on December, 2012, of which corporate accounts constitute 53.68%.
Of this, about 172 corporate accounts are NPAs of more than Rs.100 crore at the end of December, 2012. The amount involved in such cases is to the tune of Rs.37,194 crore.
As many as 215 projects with an investment of Rs.7 lakh crore were now postponed and banks had distributed about Rs.54,000-crore in loans towards them.

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