Govt rules out any relief to bank loan defaulters

Written by Press Trust of India | New Delhi | Updated: May 19 2012, 05:07am hrs
Ruling out any relief to bank loan defaulters owing R1 crore and above, government on Friday said all efforts will be made to recover the dues from such companies and individuals.

Maintaining that the government was under no pressure to waive loans of R1 crore and above, minister of state for finance Namo Narain Meena said in the Lok Sabha that no relief will be given to defaulters.

Recovery is an on-going process. All loans will be recovered, Meena said.

He said 2,492 account-holders owing R1 crore and above had defaulted in 2010-11 and the total amount to be recovered is R25,041 crore. Meena said banks were required to monitor non-performing assets (NPAs) and take steps to bring them down through recovery and other channels. RBI also monitors the NPA levels in banks. The banks are also advised by RBI from time to time to take effective measures to strengthen the credit appraisal and post-credit monitoring to arrest the incidence of fresh NPAs.