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Apex court asks RBI to furnish list of defaulters

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Details of those with dues of Rs. 500cr & above to be produced in a sealed envelope in 6 weeks
The Supreme Court on Tuesday directed the Reserve Bank of India (RBI) to furnish within six weeks details of all defaulters who have outstanding dues of Rs.500 crore and above. The list should be across public sector ( PSU) banks and all financial institutions, the court emphasised.
The order passed by the Bench headed by Chief Justice T S Thakur said the central bank should also include details of restructured assets and names of institutions whose debts have been written off in the past five years. The court has asked for the list to be submitted in asealed envelope.
According to RBI’s estimates, as of September 2015, the gross plus restructured and written off assets amounted to 14.1 per cent of bank loans. For PSU banks, the share was 17 per cent. If the December quarter numbers are added, this could shoot up further. Most of the stress has come from the medium industries segment, which accounted for 31.5 per cent of bad loans, according to a presentation by RBI Deputy Governor S S Mundra.
However, experts say banks might not be able to recover most of the dues, even if there is a question of wilful default.
In most cases, the personal guarantees of promoters are not adequate.
In fact, the value of projects against which loans have been given have fallen drastically since these were taken.
Business Standard, New Delhi, 17th February 2016

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