New Delhi: In a bid to recover the Non Performing Assets (NPAs) from the customers, the public sector banks are mulling tough action against the 30 billionaires including Vijay Mallya who are not paying bank loans, citing losses.
The corporate accounts of 30 customers constitute a little more than 40 percent of the total NPAs. Several banks including Oriental Bank of Commerce, Corporation Bank, Vijya Bank, Indian Bank, Andhra Bank are going to launch drive for recovering their dues.
Expressing serious concern over a surge in banks’ NPAs and cases of restructured accounts, Finance Ministry directed lenders to take stern action for recovery of their dues.
The shares of 30 customers in the NPAs have increased from 34.2 percent in March, 2010 to 44 percent in December, 2012, thanks to the lackadaisical attitude of the banks in recovering the loans from influential debtors.
The shares of 30 customers in NPAs rose from Rs 14,983 crore in March, 2011 to Rs 41,660 crore in December 2012. Total NPAs have grown by 42.6 percent from Rs 1.28 trillion as of December 31, 2011 to Rs 1.83 trillion on December 31, 2012.
The banks allow more time to customers to return their dues at lower interest rate. Despite, the lenders are unable to recover their loans from the influential customers. The banks don’t shy away from attaching the properties of small farmers and common people who fail to return loans on time, while they take no action against Vijay Mallya who has to pay back a loan worth Rs 7, 500 crore.