Bank employee unions are the latest group to put pressure on big private sector defaulters. The All-India Bank Employees unions today released the list of top 50 loan defaulters, who account for Rs 40,528 crore hole in public sector banks' books barring SBI and IDBI Bank.
Topping the list is Kingfisher at Rs 2,673 crore; followed by Winsome Diamond at Rs 2660 crore. Other defaulters like Electrotherm India, Zoom Developers, Sterling Biotech, S Kumars owe more than Rs 1500 crore to these government banks. The head of employee's union says they are looking to release data of over 7000 accounts, which have defaulted on loans above crore rupees.
Also Read: As bad loans mount, India gets tough on 'wilful' default
CH Venkatachalam, general secretary, All-India Bank Employee's Association says: “There are 7295 names in which about Rs 68,000 crore loans are involved Rs 1 crore and above. That we will publish. Incentives are being given for corporate delinquents. In fact, about 3.25 lakh crore of which about Rs 2.70 lakh crore of bad loans are being restructured as good loans, as performing loans. These are all pertaining to the corporate people. Restructured loans CDR accounts are nothing but hidden NPAs. It's a volcano. Anytime the bomb can blast."
But the association does not stop at that. It is now demanding that banks publish the list of defaulters of Rs 1 crore and above and classify “wilful default” as criminal offenders. Currently, RBI collates the data of wilful defaulters for improving bank supervision.
Finance Ministry and RBI have been concerned about the way promoters renege on their loan repayments. They had asked banks to go after wilful defaulters aggressively and even look at management takeover as part of the recovery process.
All-India Bank Employees' union had published a similar list of defaulters in 2003, 2005 and 2007 as well, to point out that while public sector banks are criticised for incompetence, it is the private entities which cheat them.
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