In the last two decades public sector banks have been burdened with large Non-Performing Assets of Private Corporate Companies. In this article, we will have a look at the NPA and Hair Cut Data of Banks.
As on 31st March
Gross NPA (Rs.cr)
2012
1,17,000
2013
1,64,461
2014
2,16,739
2015
2,78,877
2016
5,39,955
2017
6,84,732
2018
8,95,601
2019
7,39,554
2020
6,78,318
2021
6,16,615
2022
5,42,173
2023
4,28,199
2024
3,48,457
2025
2,90,347
Bank Loan Haircuts
Banks have provided a huge haircut to private corporate companies who have defaulted on the loan. Haircut upto 95% have been provided to companies. Loan of upto Rs.4800 crores has been settled by the banks for just Rs.320 crores.
(Rs. in Crores)
Borrower
Loan Amount
Settled and resolved for
Haircut for Banks in %
Purchased by
Essar
54000
42000
23
Arcelor Mittal
Bhushan Steels
57000
35000
38
Tatas
Jyothi Structures
8000
3600
55
Sharad Sanghi
DHFL
91000
37000
60
Piramal
Bhushan Power
48000
19000
60
JSW
Electrosteel Steels
14000
5000
62
Vedanta
Monnet Ispat
11500
2800
75
JSW
Amtek
13500
2700
80
DVIL
Alok Industries
30000
5000
83
Reliance + JM Fin
Lanco Infra
47000
5300
88
Kalyan Group
Videocon
46000
2900
94
Vedanta
ABC Shipyard
22000
1200
95
Liquidation
Sivasankaran Industries
4800
320
95
Father-in-law
Bank NPA Provisioning
Due to these big loan NPAs, banks provision the loss and due to this provisioning, net profit of banks decreases.
Just check..all loan account above 5 crore..not one but all accounts are green fabricated…to look always green
But providing every year increasing every loan portfolio above 5 cr.
Why …because all loan above 5 cr are not true to govt. For not paying personal taxes of income generation rs20 lac only income shown by them by using software only working for banks.they bank interest, insurance,bank processing charges.
And continuous to pay next 5 to 15 years than become NPA.
Faults..lies in processing of loan cases year to year ,they become so fatty to become boom blast as NPA ac. Eatup huge profit earned by banks.
Only remedy to higher experts to tell in how years borrower ac will NPA.
Like I have was trained for this intuition.
Why loan amount above Rs.5.00 cr? It is applicable for all. In fact the actual modus operandi in many cases is to sanction and disburse such credit proposals where OTS is predecided at proposal level only. Such type of loans are non viable, non operating, no activity with no end use verification and pro npa at the sanctioning level itself and get settled below ledger balance with huge loss to public funds.
Just check..all loan account above 5 crore..not one but all accounts are green fabricated…to look always green
But providing every year increasing every loan portfolio above 5 cr.
Why …because all loan above 5 cr are not true to govt. For not paying personal taxes of income generation rs20 lac only income shown by them by using software only working for banks.they bank interest, insurance,bank processing charges.
And continuous to pay next 5 to 15 years than become NPA.
Faults..lies in processing of loan cases year to year ,they become so fatty to become boom blast as NPA ac. Eatup huge profit earned by banks.
Only remedy to higher experts to tell in how years borrower ac will NPA.
Like I have was trained for this intuition.
Why loan amount above Rs.5.00 cr? It is applicable for all. In fact the actual modus operandi in many cases is to sanction and disburse such credit proposals where OTS is predecided at proposal level only. Such type of loans are non viable, non operating, no activity with no end use verification and pro npa at the sanctioning level itself and get settled below ledger balance with huge loss to public funds.