Kolkata, Feb 27: When the chairman of the Indian Banks Association SS Kokliurged the local chambers here to prevail on their members to repay bankloans, the reception was indifferent at best.But the IBA's Mr Kohli, who is also chairman of Punjab National Bank, wasbasing his appeal on hard facts. According to figures culled from datareleased by the Reserve Bank of India, members of the country's apexchambers of commerce and industry account for around 70 per cent of thetotal non-performing assets (NPAs) of the banking system.
Members of the Confederation of Indian Industry alone are responsible forover 41 per cent of the total gross NPA. The CII members were holding upnearly Rs 25,000 crore against the gross NPA of Rs 60,841 crore during theyear to March 31, 2000, the latest period for which official statistics areavailable.
The worst hit are the public sector commercial banks. The total number ofaccounts with these banks classified as "doubtful cases", against whom suitshas been filed, was 5,221. Similar accounts with private banks and financialinstitutions numbered 2,302.
In fact, a review of the individual NPAs of over Rs 50 crore shows that itis the big corporates who are closely associated with the major chambers ofcommerce are to bes blamed the most.
The Parasrampuria group tops the list, with its group outfits accounting forNPA of Rs 532.95 crore between them. The banks and financial institutionswho have fallen victims of the Parasampuria group are IFCI, State Bank ofIndia, Bank of Baroda, ICICI, Canara Bank, State Bank of Bikaner & Jaipur,State Bank of Travancore, State Bank of Patiala, Punjab National Bank,Credit Agri Indosuez and State Bank of Indore.
The second biggest defaulter is East West Travel & Links Ltd and its groupcompanies, whose combined default with SBT, SBH, SBI, Dena Bank, VijayaBank, United Western Bank and Indian Bank accounts for a total NPA of Rs246.88 crore.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
