Date:02/12/2005 URL: http://www.thehindu.com/2005/12/02/stories/2005120220560400.htm

Karnataka - Bangalore

Bank employees' union releases list of defaulters in State

Special Correspondent

Prestigious corporates account for substantial part of the non-performing assets

Securitisation Act not helped banks recover loans
Total NPA in the country estimated at Rs. 96,000

Karnataka accounts for Rs. 4,242 crores NPA

Bangalore: The All India Bank Employees Association (AIBEA) has come out with a list of bank loan defaulters in Karnataka and as of March 2004 the amount involved is Rs. 4,242 crores (604 accounts with borrowings above Rs. 1 crore). The amount has been categorised as non-performing assets (NPAs) of various public sector, private sector, foreign banks and other financial institutions.

Giving details of the defaulters, General Secretary of the Karnataka Pradesh Bank Employees Federation H.V. Rai said the list had been authenticated by the Reserve Bank of India (RBI). As per the RBI, Maharasthra stood first among the list of NPA defaulters (amount involved Rs. 37,396 crores), followed by Delhi (Rs. 13,399 crores), Tamil Nadu (Rs. 10,755 crores), Andhra Pradesh (Rs. 6,542 crores) and Gujarat (Rs. 5,706 crores). The overall NPAs across the country amounted to Rs. 96,000 crores.

Most of the defaulters were big corporate houses and suits had been filed against them. Topping the list is Bangalore-based Shrishma Fine Chemicals and Pharmaceuticals (Rs. 275 crores) followed by Bellary Steels and Alloys (Rs. 189 crores), Tungabhadra Fibres (Rs. 98 crores), Ready Foods (Rs. 89 crores), Karnataka Ball Bearings (Rs. 85 crores), Sandur Laminates (Rs. 61 crores), Ideal Jawa (Rs. 50 crores), and BPL Ltd. (Rs. 36 crores).

Mr. Rai said the association is not aware whether these companies had made any settlement after March 2004. He said there are a number of companies which figured in the non-suit filed accounts and they included Sandur Manganese and Iron Ore (over Rs. 90 crores from seven banks); Kirloskar Electric Company (Rs. 50 crores from four banks); Electrex India (Rs. 36 crores from three different banks); HMT Ltd. (Rs. 18 crores); Karnataka Cements (Rs. 2 crores); Namaste Exports Rs. 28 crores from two banks); Kirloskar AAF Ltd. (Rs. 5.5 crores) and so on.

Among the nationalised banks, Canara Bank tops with non-suit filed accounts amounting to Rs. 166 crores, followed by Bank of India (Rs. 107 crores), Punjab National Bank (Rs. 29 crores), Syndicate Bank (Rs. 26 crores), Bank of Baroda (Rs. 25 crores), and Central Bank of India (Rs. 22 crores), totalling to Rs. 434 crores.

The Industrial Development Bank of India with NPA of Rs. 169 crores topped among the financial institutions.

The State Bank of India has non-suit filed accounts amounting to Rs. 46 crores, State Bank of Mysore Rs. 26 crores and State Bank of Hyderabad Rs. 22 crores.