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Top 100 Defaulters Hold 43% of India’s Bank NPAs: RTI Report


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A recent Right to Information (RTI) response has brought to light the alarming concentration of bad loans in India’s banking sector. According to the data, the top 100 defaulters alone are responsible for 43% of the total Non-Performing Assets (NPAs), amounting to over ₹4 lakh crore.

This finding highlights the disproportionate impact of a small group of borrowers on the banking system. Experts warn that such large-scale defaults not only weaken the financial health of banks but also reduce their capacity to lend to other sectors, further slowing economic growth.

The data raises serious concerns about the effectiveness of existing loan recovery mechanisms. Despite measures like the Insolvency and Bankruptcy Code (IBC) and asset reconstruction frameworks, the persistence of high-value defaults indicates the need for stronger action.

As of 31 March 2019, the total Non-Performing Assets (NPA) of all Scheduled Commercial Banks (SCBs) in India stood at Rs 9.33 lakh crore—the second-highest NPA amount ever recorded. The only instance of a higher NPA was in 2018.

What are Scheduled Commercial Banks (SCBs)?

SCBs are banks listed in the second schedule of the Reserve Bank of India Act, 1934, which grants them the authority to operate in India. This category includes:

  • Public sector banks
  • Private sector banks
  • Regional rural banks

What is an NPA?

An NPA refers to a loan given by banks that has not been repaid within a specified period. Generally, if no payment is made for 90 days, the loan is classified as an NPA.

Key Findings

NPA Concentration in Few Companies

According to information obtained by the Indian Express via RTI:

  • 43% of the total NPA (Rs 9.33 lakh crore), i.e., Rs 4.02 lakh crore, is attributed to just 100 companies.
  • Among these, 30 companies alone account for Rs 2.86 lakh crore, which is 30% of the total NPA.

Notable Companies with High NPA

Some of the prominent names in the list include:

  • Reliance Communications
  • Reliance Naval and Engineering Limited
  • Ruchi Soya Industries (now Patanjali Foods)
  • J.P. Associates, J.P. Power Venture, and J.P. Infratech
  • Jet Airways
  • Jindal India Thermal Power
  • Mehul Choksi’s Gitanjali Gems

Status of Defaulting Companies

  • Out of these 100 companies, 82 are undergoing bankruptcy proceedings.
  • Only one-third are in the process of liquidation, where assets are sold to repay debts.
  • This indicates that banks are unlikely to recover a significant portion of the loans from these companies.

The Larger Picture

As of 31 March 2019, the total debt owed by these 100 defaulting companies was Rs 8.44 lakh crore. Almost 50% of this debt has already been classified as NPA by banks. Furthermore, 50% of the total loan amount is concentrated in just 15 companies, primarily from the Manufacturing, Energy, and Construction sectors.

  • 31 March 2015: Total NPA stood at Rs 3.23 lakh crore.
  • 31 March 2018: NPA peaked at a record Rs 10.36 lakh crore.
  • March 2023: NPA declined to Rs 5.71 lakh crore.

The decline in NPA post-2018 was primarily due to banks writing off loans. These bad debts were removed from balance sheets and classified as losses, effectively waiving off the amounts.

This trend highlights the persistent challenges in India’s banking system, emphasizing the need for better financial oversight and accountability.

The Reserve Bank of India (RBI) and government authorities have been working to tackle the NPA crisis, but the latest figures suggest that significant challenges remain. Policymakers and financial institutions are being urged to enhance due diligence, improve monitoring of large borrowers, and ensure stricter accountability to protect the stability of the banking system.

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