Bank Rs.100 crore recovered from dedaulters

Banks have recovered Rs 100 crore from 100 willful defaulters. More than Rs 84,000 crore outstanding

- An increase of more than 5% in the default amount over a period of one year

- Banks have written off 75% of this amount to clean the balance sheets, but the Reserve Bank's report shows this amount as default.

Banks owed more than Rs 84,000 crore at the end of last financial year to the country's top 100 willful defaulters. Banks owed the most to Gitanjali James, according to Reserve Bank figures. Of this, 32% came from the top ten defaulters. At the end of March 2020, the country's banks owed a total of Rs 84,632 crore to willful defaulters, according to RBI data.

Banks have written off 75% of this amount to clean up their balance sheets, though the Reserve Bank's report shows the amount as default. It will continue to be mentioned as the default until the amount is paid, said a banker.

The size of the default amount increased by 5.34% at the end of FY2020 compared to FY2019. The default amount at the end of March 2019 was Rs 80,344 crore, according to data provided by the Reserve Bank.

Among the wilful defaulters, Gitanjali had the highest amount of Rs 5,693 crore. Punjab National Bank had the highest exposure in Gitanjali with Rs 46 crore. State Bank was borrowing Rs 1,875 crore from the top 10 defaulters.

In Right Off, banks move their non-performing assets from active balance sheets to off-balance-sheet accounts. The Reserve Bank has instructed banks to completely write off NPAs older than four years. One of the reasons behind the decline in NPAs in FY2020 was the massive write-off.