19/02/2018 India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs - The Financial Express

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Home / Industry / Banking finance

India’s Bad Loans: Here is the list of 12 companies

constituting 25% of total NPAs
By: Pragya Srivastava | Updated: October 23, 2017 9:33 PM

  

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Basic Salary (P.A.)
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According to the RBI,
INCOME TAX
just 12 companies are estimated to account for 25% of the total NPA, and have been identified for
immediate bankruptcy proceedings. (Image: Reuters) IMPACT

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19/02/2018 India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs - The Financial Express

Bad loans made their way back to news after private lender Axis Bank reported that
their gross non-performing assets (NPAs) rose to 5.90% as compared to 4.17% in the
same period a year ago last week. The case of India’s bad loans is, indeed, getting worse
day by day. According to the RBI, just 12 companies are estimated to account for 25% of
the gross NPAs, and were identified for immediate bankruptcy proceedings, while there
are 488 others which have been given six months time to restructure their debt or be
dragged to National Company Law Tribunal (NCLT).

Here are the companies identified by RBI for immediate bankruptcy proceedings:

Bhushan Steel Ltd: Bhushan Steel, the largest manufacturer of auto-grade steel in India,
has a loan default of Rs 44,478 crore. The State Bank of India (SBI), the lead bank of the
consortium of lenders, had moved the NCLT for recovery of its loan. The NCLT has
reserved its order on the plea.

Lanco Infratech Ltd: Lanco Infratech, once listed among fastest growing in the world,
has a loan default of Rs 44,364 crore. IDBI has already initiated the process under the
Insolvency and Bankruptcy Code against company’s loan defaults.

Essar Steel Ltd: Essar Ltd, one of the biggest in India and abroad in the steel sector, has
a loan default of Rs 37,284 crore. While there were 11 other companies staring at same
fate as Essar Steel, it chose to challenge RBI’s direction in the Gujarat High Court, which
was later dismissed. Essar claimed it belonged to 488 companies which were given six
months time to restructure their debt.

  

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19/02/2018 India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs - The Financial Express

(Data: PTI)

Bhushan Power & Steel Ltd: Bhushan Power and Steel, a sister company of Bhushan
Steel, also has a loan default of Rs 37,248 crore. Bhushan Power and Steel was dragged
to the NCLT by the Punjab National Bank. The NCLT has also reserved its order on the
plea.

Alok Industries: Alok Industries, which is a Mumbai-based textile manufacturing

company, has a loan default of Rs 22,075 crore. The NCLT, in July, admitted insolvency
proceedings against the company filed by State Bank of India for recovery of its Rs 3,772
crore loan. Other lenders include Punjab National Bank, Bank of Baroda, IDBI Bank,
Standard Chartered Bank etc.

Amtek Auto Ltd: Amtek Auto, one of the largest integrated component manufacturers in
India, has a loan default of Rs 14,074 crore. SBI had moved the NCLT for bankruptcy
 proceedings
  against the bank, which was admitted by the Chandigarh bench.

Monnet Ispat and Energy Ltd: Monnet Ispat and Energy, one of India’s steel producers
have a loan default of Rs 12,115 crore. The bankruptcy proceeding against the company
was approved by NCLT in July.

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19/02/2018 India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs - The Financial Express

Electrosteel Steels Ltd: Electrosteel Steels is an Indian water infrastructure company

based in Khardah near Kolkata. The loan default by the company stands at Rs 10,273
crore. Consortium leader SBI had initiated insolvency proceedings, which was admitted
by NCLT.

Era Infra Engineering Ltd: Era Infra Engineering, one of India’s infrastructure
companies, has a loan default of Rs 10,065 Crore. Union bank had moved the NCLT
against the company, but the tribunal reserved its order over jurisdiction issues. There
are many winding-up petitions pending in the Delhi High Court against the company
which has superior jurisdiction over NCLT.

Jaypee Infratech Ltd: Jaypee Infratech is a subsidiary of conglomerate Jaypee Group

founded by Jaiprakash Gaur. It has a loan default of Rs 9,635 crore. In August, NCLT had
admitted insolvency petition filed by IDBI bank, but the Supreme Court stayed the order
after home buyers filed petitions against the move. The company is now seeking to sell
Yamuna Expressway to raise Rs 2,500 crore to compensate homebuyers.

ABG Shipyard Ltd: ABG Shipyard, an Ahmedabad-based shipbuilding company, has a

loan default of Rs 6,953 crore. The company is one of the two companies among the 12
which has agreed to loan default and bankruptcy proceedings initiated by the banks.

Jyoti Structures Ltd: Jyoti Structures, a power transmission and distribution company,
has a loan default of Rs 5,165 crore. The company became the first among the 12
companies to face the bankruptcy proceedings. The petition for insolvency was filed by
its lead lender SBI. Like ABG Shipyard, Jyoti Structures did not oppose the bankruptcy
proceedings against it.

Country’s bad loans have hit a record high of 9.5 lakh crore at the end of June 2017,
  
Reuters said in a report quoting the Reserve Bank of India data accessed through the
RTI.  In India, power, steel, road infrastructure and textiles sectors are the biggest loan
defaulters of state-owned banks. The Securities and Exchange Board of India in August
had mandated companies to disclose details of loans on which they missed payments,
but rolled it back “until further notice” on September 29. The reason for the decision is
not clear yet.
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19/02/2018 India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs - The Financial Express

(Disclaimer: The amounts cited in the report are loan defaults by the companies and not
bad loans. A loan becomes bad when a bank declares that it cannot recover the amount
lent to a company. The RBI has estimated these 12 accounts constitute about 25% of the
gross NPAs.)

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Sonowal Reply

  
S Jan 9, 2018 at 8:08 pm

Installment not returning to Bank against a car loan is snatching the car from an unemployed person.
Why not those ?

Himanshu Reply
H Dec 12, 2017 at 7:09 pm

How did this companies get financial for such huge amounts...

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19/02/2018 India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs - The Financial Express

Jayesh Sheth Reply

Oct 24, 2017 at 9:07 am

Actually the financial market in india is in servious trouble.Because what is the reason that this
company are able to collect this money that they have to find out and where these money go.Because
this type of situation crack downsooner or later the ecomomy of the country.

Ramesh B Bhatia Reply

Oct 23, 2017 at 10:01 pm

WHOM TO BLAME : Banks / RBI / M of Fin / Internal External Auditing firms Who has authority to
approve loans and against what projects / security/ Directors performance ? etc ? No solution can be
found for NPA ? Why there is no Control over extending facilities to such companies ? Who is
authorized to monitor it ? The best solution is that GOVT must take : - 1) take over all the assets of
companies, their subsidiaries etc. 2) Stop all ries/ perks etc to directors, all must be held personally
responsible for wrong doing 3) all accounts must be scrutinized immediately under the supervision of
team selected by M/o Finance (no personnel from Bank or RBI or Auditing firm) entirely new team to
verify details of payments and expenditures ? All important documents bearing signatures must be
microfilmed. 4) evaluate unfinished / semi -finished projects valuation . .to complete in 3 months. 5)
start working on projects to complete it. . after all it is public money /RBI..

Murty Reply
M Oct 25, 2017 at 2:24 am

The bankers and the netas under whose influence they have been given.all these loans are
with son influence otherwise no loans are given without collateral .no media is asking that.

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