1629 Wilful Defaulters Owe Rs 1.62 Lakh Crore To PSU Banks
Public sector banks have written off a whopping Rs12.08 lakh crore in bad loans between the financial year 2015–2016 and FY 2024-2025: Reports
MUMBAI: India’s public sector banks have classified 1,629 corporate borrowers as wilful defaulters, with outstanding loans totalling Rs 1.62 lakh crore as of March 31, 2025, the finance ministry informed the Parliament on Tuesday.
FALAKNAAZ SYEDResponding to a question by a member of Parliament, Minister of State for Finance Pankaj Chaudhary stated that this data, excluding overseas borrowers, is based on reports submitted by banks to the Central Repository of Information on Large Credits (CRILC).
Public sector banks have written off a whopping Rs12.08 lakh crore in bad loans between the financial year 2015–2016 and FY 2024-2025.
As per the Minister, nine individuals who fled the country have been declared fugitive economic offenders, with approximately Rs 15,298 crore of assets have been confiscated under the Prevention of Money Laundering Act (PMLA), and Rs 750 crore under Fugitive Economic Offenders Act (FEOA). Additionally, Rs 25,806 crore worth of assets have been restituted to victim banks and legitimate claimants in various bank fraud cases.
Meanwhile, responding to another question Chaudhary informed the Rajya Sabha that the government is estimated to have forgone around Rs 99,000 crore in revenue in the 2023-24 fiscal on account of tax incentives extended to corporates. Corporate tax rates have been gradually reduced since 2016 while phasing out the exemptions and incentives.
He also said that the present deposit insurance cover limit of Rs 5 lakh per depositor aligns with global standards signalling that the government may not raise the current cover limit on deposits.