Bad News For People like Nirav Modi, Vijay Mallya
How are the corporate banks like Neerav Modi and Vijay Mallya hollow, it becomes clear from the new data of RBI. 76% of the bank's total immersed loan (NPA) are making huge corporate dips. That is, if a bank drops 100 rupees then 76 of them are mainly dipped by corporate. While the rest is sinking due to the customer, the small businessman, the farmer, the home loan, the education loan customer. The special thing is that in the last 4 years, the share of loan default of corporates has increased steadily. In 2013, it was at the level of Rs 59. That is, the bank's share of Rs 100 for the immersed Rs 100 was Rs 59.
According to the RBI data, the non-priority sectors (mainly under corporate loans) accounted for 76.6 per cent of the gross NPAs of banks in the year 2017. However, the share of priority sector (Agri loan, Education, Home and Micro & Small Sector loans) was 23.4 per cent. According to the report, in the last 4 years, this stake has increased very fast. In 2013, the share of non-priority sectors (mainly through corporate loans) was 59 percent in total NPA, which increased to 64.4 percent in 2014, 65.7 percent in 2015 and 74.9 percent in 2016.
Highest impact on SBI
According to RBI data, SBI, which has the highest impact of default by non-priority sectors (mainly through corporate loans), has been hit. According to the report, the NPA's share in SBI, through non-priority sector, is 82.4 per cent. Which has been growing steadily for the last 4 years. In 2013, the share was only 55.9 per cent, which has now reached 82 per cent. Similarly, the share of private sector banks has increased from 74 per cent in the last four years to 82 per cent.
NPAs are coming in front of due diligence
According to Banker GS Bindra, the problem of NPA has become very big in the last 3-4 years. The reason for this is the stricter norms, along with the economic slowdown. The RBI has taken several such steps, due to which the banks can no longer under-report. Because of this, NPAs are also emerging very fast. According to RBI data, till September 2017 alone, NPAs of public sector banks alone have reached Rs 8 lakh crore.
9063 Willful Defaulter in the Country
According to the Ministry of Finance till December 2017, there are a total of 9,063 willful defaulter in the country. That is, these are people who have the ability to repay the debt but are not knowingly paying the debt. According to the government alone, these 9063 people alone owed more than 1.10 lakh crore loan on banks.