Over 43 per cent of the overall non-performing belongings (NPA) until March 2019 — Rs 4.02 lakh crore — was accounted for by simply 100 corporations and 30 of those debtors accounted for over 30 per cent of the gross NPAs — Rs 2.86 lakh crore, an investigation by The Indian Categorical has revealed.
India’s scheduled industrial banks (SCBs) had gross NPAs price Rs 9.33 lakh crore as of March 31, 2019, the second-highest-ever dangerous mortgage quantity recorded after 2018 within the historical past of India’s banking system.
The investigation additional reveals that the highest 100 financial institution defaulters, which incorporates among the nation’s largest corporations from throughout sectors run by outstanding industrialists, had a complete debt of Rs 8.44 lakh crore until March 31, 2019 and out of this almost half was declared as dangerous loans, or NPA.
A better have a look at the checklist of the highest defaulters additionally reveals simply 15 corporations of three sectors — manufacturing, power and building — accounted for over 50 per cent (Rs 4.58 lakh crore) of the overall debt on these 100 corporations.
For the primary time, the checklist of high 100 financial institution defaulters has been accessed by The Indian Categorical underneath the Proper To Info Act. This checklist got here after knocking on the Reserve Financial institution of India (RBI) doorways by a number of RTI purposes and appeals over a four-year-period since 2019. The matter reached as much as the Central Info Fee (CIC) and after a number of hearings, the central financial institution disclosed the data in November 2023, and that additionally solely partially.
The whole NPAs rose from Rs 3.23 lakh crore as on March 31, 2015 to Rs 10.36 lakh crore as on March 31, 2018, which was the very best ever. It then got here down in 2019, and additional all the way down to Rs 5.71 lakh crore as on March 2023, partly on account of writedowns undertaken by lenders.
The information accessed underneath the RTI Act additionally reveals that high 100 financial institution defaulters, which can have modified since 2019, accounted for an NPA quantity of Rs 1.07 lakh crore as on March 31, 2024.
The nation’s high enterprise giants from throughout the sectors — manufacturing, power, building, actual property, telecom, banking or monetary intermediation — represent the highest 100 checklist of NPAs or banks defaulters.
Within the first a part of the investigation, The Indian Categorical revealed {that a} complete of 82 entities within the checklist are at completely different phases of chapter proceedings, with roughly a few third having gone the liquidation route, which means that banks would have gotten little or no a reimbursement in these instances.
Based on the RBI information, Reliance Communication Restricted, ship-building firm Reliance Naval & Engineering Restricted and no less than two subsidiary corporations of Reliance Group, Jaypee Group’s Jaiprakash Associates Restricted, Jaiprakash Energy Enterprise Restricted, and Jaypee Infratech Restricted, Infrastructure finance firm IL&FS’s IL&FS Monetary Providers Restricted, IL&FS Tamil Nadu Energy Firm Restricted, IL&FS Transportation Networks Restricted, and IL&FS Vitality Growth Firm Ltd., Jet Airways, Ruchi Soya Industries (now Patanjali Meals), two corporations of the Videocon group, Jindal India Thermal Energy, 4 corporations of Essar group, 5 corporations of infrastructure group LANCO, Mehul Choksi’s Gitanjali Gems, are among the many corporations on the checklist.
Whereas a most — 34 corporations belong to the power sector, 32 corporations are from the manufacturing sector, 20 building or actual property corporations, 5 telecom corporations, and 9 corporations belong to different sectors.
Quantum of debt
Bhushan Energy & Metal Restricted tops the checklist with an impressive debt of Rs 41,400 crore as on March 2019. Essar Metal India Restricted is in second place, with an impressive debt of Rs 69,360 crore. The corporate was later acquired by ArcelorMittal Nippon Metal India Restricted in 2019.
The opposite corporations in high 10 are Videocon Industries Restricted with a debt of Rs 58,052 crore, VOVL Restricted (Rs 1,189 crore debt), Jaiprakash Associates Restricted (debt of Rs 36,591 crore), KSK Mahanadi Energy Firm Restricted (debt of Rs 21,390 crore), Reliance Communications Restricted (debt of Rs 46,659 crore), Alok Industries Restricted (debt of Rs 29,569 crore), Prayagraj Energy Era Firm Restricted (debt of Rs 13,767 crore) and Jaiprakash Energy Ventures Restricted with a debt of Rs 23,193 crore.
The highest 100 financial institution defaulters are listed based on their excellent NPAs. Within the checklist, corporations having larger borrowings could replicate a decrease NPA quantity.
Different recognized corporations reminiscent of Gitanjali Gems Restricted is on thirteenth quantity, Dishnet Wi-fi Restricted on 14th place, AIRCEL Restricted on sixteenth, Jindal India Thermal Energy Restricted on 18th, Infrastructure Leasing and Monetary Providers Restricted (IL&FS) on twenty first, Ruchi Soya Industries Restricted on twenty sixth quantity, Reliance Naval and Engineering Restricted on thirtieth quantity, Essar Energy Gujarat Restricted on thirty fifth quantity, Lanco Amarkantak Energy Restricted on fortieth quantity, Rotomac International Personal Restricted on seventieth quantity, Mumbai Metro One Personal Restricted on 79th quantity, Nakshatra Manufacturers Restricted on 86th quantity, Visa Energy Restricted on ninety fifth quantity, Fast Metrorail Gurgaon South Ltd on 99th, and Gammon India Restricted is on the one centesimal quantity within the checklist.
These corporations are concerned in a number of essential tasks reminiscent of extraction of crude petroleum and pure gasoline, thermal and hydro energy technology, coal mining, oil & gasoline exploration, ship constructing, fertilisers and so on.
An evaluation of 2023 debt standing of those 100 corporations by their annual studies and Annual Returns filed with the Registrar of Corporations reveals {that a} complete of 51 corporations, of which information can be found, nonetheless had a debt of Rs 3.58 lakh crore by the tip of FY23.
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