India’s Ministry of Finance has released the latest data about corporate defaulters. It reveals that 1,629 companies have intentionally failed to repay their bank loans. These companies owe a huge amount — ₹1,62,961 crore — to India’s public sector banks. In other words, they took loans but did not repay them even when they could afford to. The RBI classifies such borrowers as wilful defaulters.
Data from CRILC: Tracking Big Loan Defaulters
The Central Repository of Information on Large Credits (CRILC) provides this data. It only tracks large domestic loan defaulters and excludes companies that borrowed from foreign banks. Specifically, any company owing ₹25 lakh or more gets added to the list, and credit agencies like CIBIL and Experian receive these names every month.
Strong Steps: No New Loans, No New Business
In response, the government has introduced strict measures against wilful defaulters. For example, these companies cannot obtain new loans or start new businesses for five years. Moreover, their related companies cannot raise funds from the stock market. Additionally, some banks have initiated criminal proceedings against them to prevent further fraud and ensure they repay the money owed.
Catching Big Offenders: Fugitive Economic Offenders
To tackle major frauds, the government is also pursuing individuals who fled with large sums of money. So far, it has declared nine people, such as Vijay Mallya and Nirav Modi, as fugitive economic offenders. Authorities have seized assets worth ₹15,298 crore from them. Furthermore, under the Prevention of Money Laundering Act, banks have recovered assets worth ₹25,806 crore, which helps restore public funds.
Private Banks Playing Safe
While public sector banks continue to suffer substantial losses due to these defaulters, private banks are taking proactive steps to protect their loan portfolios. Banks like HDFC Bank, ICICI Bank, and Axis Bank now apply stricter lending criteria and conduct more thorough credit checks to reduce the risk of loan defaults.
RBI Tightens the Rules
Recently, the RBI and banks have strengthened their regulations. Consequently, any company attempting to defraud banks can be detected more quickly through enhanced monitoring systems. Banks are collaborating closely with credit agencies and technology firms to identify bad borrowers at an earlier stage. These efforts aim to safeguard depositors’ money and maintain the stability of India’s banking sector.
Public Can Check Defaulter Names
Furthermore, the government encourages public transparency by allowing anyone to access the list of wilful defaulters on websites such as CIBIL and Experian. Experts believe this openness will discourage companies from cheating banks. Although recovering defaulted funds remains a challenge, the government, banks, and RBI are working together to prevent large-scale loan frauds in the future.
[…] ₹787 crore of guarantees. But now the issue has become even more delicate because recently the Finance Ministry brought out a list of large loan defaulters where the aggregate value of bank frauds and defaults comes to about ₹16,000 crore. This list […]