RBI prepares another list of 35-40 loan sharks

The Reserve Bank of India is said to have prepared a second list of 35-40 big loan defaulters. It may be formally made public in September. If these defaulters don’t clear their dues by mid-December, they may be referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.
In June, the bank had identified 12 large defaulters who collectively owed about Rs. 2 lakh crore, accounting for 25 percent of the bad loans in the Indian banking system. This included Essar Steel, Bhushan Steel, Bhushan Power, Alok Industries, Electrosteel Steels, Monnet Ispat, and ABG Shipyard.
The fresh list contains the names of more companies from the infrastructure and power sectors.
However, despite the measures taken by the RBI and banks, the list of wilful defaulters has been steadily rising.
Data put out by CIBIL show that wilful defaulters with outstanding loan balances of over Rs. 25 lakh (where suits have been filed) owed banks around Rs. 1.09 lakh crore as on March 2017, a jump of 46 percent over the previous year.
A year back, in 2015-16, stressed loans grew 31 percent over the previous year, after increasing 44 percent and 55 per cent in 2014-15 and 2013-14.

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