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Tuesday, October 27, 1998

State-run bank's bad loans down despite defaults jump 

Our Banking Bureau  
Mumbai, Oct 26: The bad-debt quantum of public sector banks, for which suits have been filed, has fallen by 31.6 per cent in March 1998 even as the number of defaulters has increased from 2,208 in 1997 to 2,735 in 1998. In absolute terms, the portfolio of "suit-filed" bad debts of 19 nationalised banks and the State Bank of India and its seven associates has gone down to Rs 12,117.74 crore in March 1998 from Rs 17,735.99 crore in 1997.

The amount of suit-filed bad loans of State Bank of India (SBI) and its seven associates has fallen by 54.15 per cent in the last one year to Rs 3,780.84 crore from Rs 8,246.62 crore while the number of borrowers has increased to 652 from 485.

Bank of India's total outstanding locked in sticky loans has fallen by 70.3 per cent to Rs 1,112.78 crore from Rs 3,748.87 crore last year. The number of borrowers has, however, gone up to 279 from 218 in the last one year.

The total outstanding bad debts of Punjab National Bank have gone up in the last one year by 16.1 per cent.The bank's Rs 1,117.84 crore is stuck in bad loans against Rs 962.34 crore last year. The number of borrowers has gone up in the current year to 204 from 171 earlier.

Indian Bank's funds locked in bad loans for the current fiscal are much higher than last year. The bank's outstanding in 1998 in suit-filed accounts is Rs 999.9 crore against Rs 497.24 crore last year, registering a 101 per cent jump. The number of borrowers has increased in 1998 to 175 compared with 123 borrowers last year.

Bank of Baroda has a total outstanding of Rs 606.36 crore, 5.3 per cent higher than last year's figure of Rs 575.59 crore. The number of defaulters has also increased to 192 from 177 earlier.

About Rs 596.41 crore worth of bad loans of Canara bank is locked in suits filed in various high courts while Rs 580.6 crore of Central Bank of India is locked in sticky loans for the period ended March 1998. In the previous year, these two banks had locked Rs 568.74 crore and Rs 572.51 crore in suit-filed accounts,respectively.

Corporation Bank has the lowest outstanding sticky loans locked in suit-filed accounts in fiscal 1998 at Rs 43.3 crore followed by Andhra Bank which has a total outstanding of Rs 122.77 crore in bad loans. In the previous year, the lowest outstanding was recorded by Corporation Bank at Rs 50.5 crore followed by Oriental Bank of Commerce with outstanding of Rs 64.23 crore and Andhra Bank Rs 78.16 crore.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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