1. Allahabad Bank adds 20 more names to list of loan defaulters besides 29 identified by RBI

Allahabad Bank adds 20 more names to list of loan defaulters besides 29 identified by RBI

Kolkata-based Allahabad Bank has identified nearly 20 accounts with a total exposure of Rs 900 crore for reference to the National Company Law Tribunal (NCLT).

By: | Updated: November 13, 2017 7:41 PM
Kolkata-based Allahabad Bank has identified nearly 20 accounts with a total exposure of Rs 900 crore for reference to the National Company Law Tribunal. (Image: PTI)

Kolkata-based Allahabad Bank has identified nearly 20 accounts with a total exposure of Rs 900 crore for reference to the National Company Law Tribunal (NCLT). These 20 accounts are in addition to 29 accounts identified by the Reserve Bank of India in the second list of defaulting accounts.

Besides these 20, Allahabad Bank is also a lender as part of a consortium, of 14 other accounts that have been identified for into the NCLT with a total exposure of Rs 1,652 crore. The RBI’s list of 29 companies include giants such as Videocon and Jaiprakash Associates. This list follows a list of 12 companies that are estimated to account for 25% of the gross NPAs and were identified for immediate bankruptcy proceedings, while the current 29 companies were given time till December 11 to restructure their debt or be dragged to NCLT.

Media reports said that of the 20 identified by Allahabad bank, three have already been admitted by NTCL. In the first 12 companies identified by the RBI, Allahabad Bank has exposure in 10 companies amounting to Rs 4,429 crore. Of the 12 companies, 11 companies have been admitted by the NTCL.

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.

Meanwhile, Allahabad Bank reported rise in net NPAs to 8.84% from  8.59% a year ago for the September quarter. Despite the bad loans, the bank posted a 7.9% rise in net profit at Rs 70.20 crore. The Kolkata-headquartered bank had registered a net profit of Rs 65.03 crore in the July-September quarter of the previous financial year, while its total income remained flat at Rs 5,067.78 crore during the quarter as against Rs 5,051.61 crore in the same period a year ago.

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