2,664 Wilful Defaulters in India: FinMin Update

New Delhi, Feb 4 (PTI) There were 2,664 unique borrowers, excluding individuals and overseas borrowers, classified as wilful defaulters as on March 2024, the Rajya Sabha was informed on Tuesday.

However, the increase in the number of such wilful defaulters has declined from 160 in the financial year (FY) 2021-22 to 42 in FY 2023-24, Minister of State in Ministry of Finance Pankaj Chaudhary said in a written reply.

As per Reserve Bank of India, as on March 2024, 2,664 Unique Borrowers, excluding individuals and overseas borrowers, have been classified as wilful defaulters, he said.

He further said that comprehensive measures have been taken by the government and RBI to deter wilful default and to reduce and recover NPAs, including those pertaining to wilful defaulters, leading to improved financial stability and financial health of banks.

Wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from floating new ventures for five years.

Further, wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise funds, the minister said.

He also said that as a result of the government's overarching policy response to recognition of stress, resolution of stressed accounts, recapitalisation and reforms in banks, the financial health and robustness of banking sector has improved significantly.

Gross NPAs of commercial banks declined to Rs 4.64 lakh crore (gross NPA ratio of 2.54 per cent) in September 2024 (provisional data) from a peak of Rs 10.36 lakh crore (gross NPA ratio of 11.18 per cent) in March 2018.

Also, slippage ratio declined to 1.35 per cent from 7.12 per cent during the period.

Replying to another question, the minister said the gross non-performing assets (GNPAs) pertaining to gold loan in commercial banks and upper and middle-layer NBFCs have increased by 18.14 per cent from March 2024 to June 2024.

The gross GNPAs pertaining to gold loan in banks increased by 21.03 per cent from March 2024 to June 2024.