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  1. Rs 85,000 crore of bad loans locked in suits in FY14

Rs 85,000 crore of bad loans locked in suits in FY14

As much as Rs 85,000 crore of bad loans are stuck in suit-filed accounts in FY14, a jump of 21.4% from Q2FY13, the All India Bank Employees...

By: | Updated: January 2, 2015 2:46 AM

As much as R85,000 crore of bad loans are stuck in suit-filed accounts in FY14, a jump of 21.4% from Q2FY13, the All India Bank Employees Association (AIBEA) said in a statement on Thursday. AIBEA vice-president Vishwas Utagi said the data on suit-filed accounts, circulated by the Reserve Bank of India among bankers, show that in Maharashtra alone, the quantum of loans stuck in suit-filed accounts was R34,585 crore in FY14. Suit-filed accounts are those in which banks take a borrower to court as a recovery measure after the loan turns into a non-performing asset (NPA). According to the statement, lenders have filed suits against companies like Shree Maheshwar Hydel Power Corporation, Winsome Diamonds and Jewellery, S Kumars Nationwide and Kingfisher Airlines. Meanwhile, bankers say the loan recovery process is a long-winding battle with the borrower and takes an average of five to seven years to settle.

All India Bank Employees Association, AIBEA, bad loans, Reserve Bank of India, Shree Maheshwar Hydel Power Corporation, Winsome Diamonds, Jewellery, S Kumars Nationwide, Kingfisher Airlines

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