Corporate debentures and bonds worth Rs 1,100 crore have turned into non-performing assets for the financial institutions at the end of 2000-01, according to a presentation made by the Reserve Bank of India (RBI) to the Joint Parliamentary Committee probing the stock market scam.
Debentures become NPAs when they are not serviced, that is, interest thereon is not paid at all or becomes overdue.
The RBI said the Industrial Development Bank of India (IDBI) had the dubious distinction of having the maximum level of NPAs arising out of debentures, totaling Rs 972 crore. ICICI has been hit by Rs 189 crore at the net NPA level.
These sticky assets have been created despite personal guarantees of the co-promoters or directors of the borrower companies, according to the RBI.
The RBI presented an institution-wise list of companies, the institution
