Banks file suits for Rs 39,000 cr recovery

NEW DELHI, MAR 6: The Indian banking sector has filed suits for recovery of over Rs 39,800 crore of loans till date from the Indian corpor...

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NEW DELHI, MAR 6: The Indian banking sector has filed suits for recovery of over Rs 39,800 crore of loans till date from the Indian corporate sector, according to All India Bank Employees Association (AIBEA).

In the public sector banks, State Bank of India (SBI) had the highest amount of Rs 5,976.87 crore under suits for 911 cases, the list of bank loan defaulters (over Rs one crore) released by AIBEA said today.

Releasing the list of defaulters here today, AIBEA General Secretary Tarkeswar Chakraborti said, "It is a who’s who of India." "Our authorities under the pretext of `secrecy’ clause are not publishing the list of defaulters," he said, adding that they were also not enacting necessary legislation for expeditious recovery of long overdue default of bank loans.

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Once these loans are realised, banks will be back to health and will run on their own system and privatisation is no panacea.

JK Synthetics and the infamous Pawan Sachdeva promoted MS Shoes (east) limited led the list of major private sector defaulters of bank loans, accounting for bad loans of Rs 246.37 Crore and Rs 134.53 crore respectively.

Metal box India limited’s bad loans to bank and financial institutions amounted to Rs. 131.42 crore, AIBEA revealed. HMT international and HMT limited together owe around Rs 77 crore to several banks and Financial institutions, while the Rita Singh promoted companies — Mesco Airlines, Mesco Exports, Mesco Pharmaceuticals, Mideast India Limited and Mideast Integrated Steel — have a cumulative bad loan of Rs 34.36 crore.

The Mittals-promoted Ispat Profiles (India) Limited’s bad loans amount to Rs 34.23 crore, while Reliance ispat and industries limited owe Rs 28.09 crore to banks and FIs and Reliance Silicones India Limited a total of Rs 23.16 crore, the list stated.

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Total bad loans today amount to Rs 58,000 crore. Of the Rs 246.37 crore bad loan credited to JK Synthetics’account, the company owes Rs 82.50 crore to Bank of Rajasthan, Kanpur, Rs 38.30 crore to Central Bank of India (Kanpur), Rs 29.18 crore to IDBI and Rs 28.84 crore to IFCI.

MS Shoes (East) owes Rs 64.22 crore to IDBI, Rs 20.47 crore to Allahabad Bank, Rs 19.02 crore to State Bank of Travancore among others. Meanwhile, Metal Box India’s owes Rs 52.46 crore to Syndicate Bank (Calcutta), Rs 32.96 crore to Bank of America, Rs 16.92 crore to State Bank of India, Calcutta and Rs 12.42 crore to State Bank of Bikaner and Jaipur (Calcutta).

The AIBEA list further revealed that among the public sector banks, State Bank of India accounts for the largest number of bad loans above Rs one crore. Around 911 account holders with the bank have erred in paying back the loans which amounted to Rs 5,976.87 crore. Among the financial institutions, IDBI’s bad loans (above Rs one crore) totalled Rs 4,431.40 crore. Oman International Bank topped the list in foreign and private sector banks with a total bad loan amount of Rs 397.37 crore from 12 parties.