The number of wilful defaulters in public sector banks (PSBs) went up by 149 per cent over the last three years. In absolute terms, the number of accounts rose from 489 during the year ended March 31, 2000, to 1,218 in March 31, 2002.
The amount involved has risen 113 per cent from Rs 2,506 crore to Rs 5,349 crore during the period. Of this, suit-filed accounts constitute Rs 4,036 crore as on March 31,2002.
Under the Reserve Bank of India's revised guidelines on wilful default, siphoning of funds and diversion have also been included. The punitive actions suggested include debarring wilful defaulters from capital markets, denial of additional finance by banks for five years from the date of publication of the names and initiation of legal proceedings, including criminal suits.
Even as actions would be limited to the company concerned, group companies would also face penal actions if the letter of comfort or guarantees are furnished and not honoured when invoked.
High value non-performing assets (NPAs), that is dues exceeding Rs 5 crore, constitute around 40 per cent of the gross NPAs of public banks. The gross NPAs of public banks in fiscal 2002 stood at Rs 55,459 crore. The amount involved in high-value NPAs as on March 31,2002 was Rs 22,866 crore compared with Rs 22,230 crore the previous year. Of these cases, suits filed account for Rs 10,657 crore, cases pending before BIFR Rs 8,163 crore, cases under rehabilitation Rs 1,905 crore and cases where settlement is considered is Rs 2,769 crore.
Of this, SBI has the highest high value gross NPAs at Rs 7,426 crore followed by Punjab National Bank at Rs 2,182 crore, Bank of India Rs 1,829 crore and Bank of Baroda at Rs 1,608 crore.
