Banks, merger of banks
Recent loan write-off amounts exceeded the funds shortfall to replace old railway tracks and spending on three social sectors.
The compromise settlement mentioned in the Reserve Bank statement means that the outstanding balances of these wilful defaulters may be settled by mutual concession, with dues not being recovered completely. Far from strengthening the means to recover loans from wilful defaulters, the statement speaks of resettlement of the outstanding amount by means of “technical write-offs”.
This has been one of the key ways through which the non-performing assets of public and private sector banks have been shown to be declining in the last few years. It has emerged like a magic wand that makes the bad debt disappear from the balance sheets.
Write-offs by banks, both public and private, over the past 10 years have shown a phenomenal increase. Write-offs by public sector banks increased from Rs 7,187 crore in 2013 to Rs 119,713 crore in 2022. Among these public sector banks, the State Bank of India has in the last 10 years written off the highest total amount, at Rs 297,196 crores.
by Anirban Bhattacharya & Pranay Raj
26/06/2023
312 Big Wilful Defaulters Owe Rs 1.41 Lakh Crore to Public Sector Banks; Here Is the List of Bank Defaulters Yogesh Sapkale 10 August 2022 https://moneylife.in/article/312-big-wilful-defaulters-owe-rs141-lakh-crore-to-public-sector-banks-here-is-the-list-of-bank-defaulters/68026.html According to data obtained under Right to Information (RTI) and analysis done by Pune-based Vivek Velankar, as of 31 December 2021, nearly 2,237 wilful defaulters have an outstanding of Rs1,84,863.32 crore. While RBI had shared a list of names of 2,278 wilful defaulters, there are 41 borrowers against whom there is zero outstanding. "I found 11 defaulters have obtained a loan from State Bank of India (SBI) and other PSBs. These wilful defaulters are ABG Shipyard Ltd, Concast Steel & Power Ltd, EMC Ltd, Rohit Ferro-Tech Ltd, Best Foods Ltd, Coastal Projects Ltd, Wind World (I) Ltd, Era Infra Engineering Ltd, BS Ltd, Rei Agro Ltd and Raj Rayon Industries Ltd," Mr Velankar says.
Moneylife coverage on the issue: https://www.moneylife.in/tags/bankloot.html
Avantha Group Promoter Gautam Thapar Arrested In Money Laundering Case https://www.ndtv.com/india-news/avantha-group-promoter-gautam-thapar-arrested-in-money-laundering-case-2502046 The ED has been probing an alleged transaction between his company Avantha Realty, Yes Bank co-founder Rana Kapoor and his wife, who are already being investigated under the PMLA by the agency. The (CBI) FIR alleges that Rana Kapoor, then MD and CEO of Yes Bank Limited, obtained illegal gratification in the form of a property in a prime location in Delhi at much less than the realisable market value belonging to Avantha Reality Ltd f
CEO’s Coterie: IndusInd’s High Flying High Risk Takers Reap Rich Rewards But Negligible Penalties https://hemindrahazari.com/2021/08/12/ceos-coterie-indusinds-high-flying-high-risk-takers-reap-rich-rewards-but-negligible-penalties/ 12 Aug 2021
In Indusind Bank, the scale of remuneration reveals how Ramaswamy Meyyappan (Chief Risk Officer) and the corporate credit team (initially led by Suhail Chander and subsequently by Roopa Satish) were handsomely rewarded (FY2017-FY2019) for doing high-risk, poor quality loans to companies like CG Middle East (US$ 40 mn in FY2018; the loan is being investigated by the Securities and Exchange Board of India), Sprit Infrapower (Rs 5 bn loan to unlisted company of founders of Zee media in FY2019) and IL&FS (Rs 20 bn bridge loan in FY2019).