Take firm steps to recover loans of sick firms from affluent promoters: FM to Banks
Sending out warning to willful defaulters, Finance Minister P. Chidambaram asked banks to take bold steps against affluent promoters to recover loans from sick companies owned by them.
- The warning comes in the backdrop of several entities, including Vijay Mallya’s Kingfisher Airlines, being unable to repay bank loans.
- Gross NPAs of PSU banks have grown from Rs.71,080 crore as on March, 2011, to Rs.1.55 lakh crore as on December, 2012, of which corporate accounts constitute 53.68%.
- Of this, about 172 corporate accounts are NPAs of more than Rs.100 crore at the end of December, 2012. The amount involved in such cases is to the tune of Rs.37,194 crore.
- As many as 215 projects with an investment of Rs.7 lakh crore were now postponed and banks had distributed about Rs.54,000-crore in loans towards them.
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Month: Current Affairs - March, 2013