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short note on NPA
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Public sectorBank Private sectorBank
Allahabad BankAxis Bank
Andhra BankDCB
Bank of IndiaDhanlaxmi Bank
BOBFederal Bank
Bank of MaharashtraHDFC Bank
Central BankICICI Bank
Corporation BankInduslnd Bank
Dena BankING Vysya Bank
IDBI BankKarnataka Bank
Indian BankYes Bank
Oriental BankJ&K Bank
PNBLakshmi Vilas Bank
Punjab & Sind BankSouth Indian Bank
Syndicate Bank
UCO Bank
United Bank
Union Bank
Vijaya Bank
SBI
State Bank Bikaner & Jaipur
State Bank Mysore
State Bank Travancore
Listed Banks in BSE 50
WEAK SECTOR
Weak Sectors No of Live Cases (2013) No of Live Cases (2014)Infrastructure 20 25Iron & Steel 59 53Power 18 15Textiles 74 45Ship-Breaking/Ship Building 3 4Telecom 11 5
Infrastructure Iron & Steel Power Textiles Ship-Breaking/Ship Building Telecom
20
59
18
74
3
11
25
53
15
45
4 5
No of Live Cases (2013) No of Live Cases (2014)
Weak Sectors Aggregate Loan Amt (2013) Aggregate Loan Amt (2014)
Infrastructure 21912 57233Iron & Steel 52682 43539Power 18640 19138Textiles 17677 20138Ship-Breaking/Ship Building 6213 16792Telecom 11681 10785
Infrastructure Iron & Steel Power Textiles Ship-Breaking/Ship Building Telecom
21912
52682
18640 17677
621311681
57233
43539
19138 2013816792
10785
Aggregate Loan Amt (2013) Aggregate Loan Amt (2014)
Major Players
Company Loan Amount
Kingfisher Airlines 2673
Winsome Diamond 2660
Electrotherm India 2210
Zoom Developers 1810
Sterling Biotech 1732
S Kumars Nationwide 1692
Kingfisher
Airlines
Winsome D
iamond
Electr
otherm In
dia
Zoom Dev
elopers
Sterlin
g Biotec
h
S Kumars
Nationwide
2673 26602210
1810 1732 1692
Loan Amount
Source: AIBEA, media report
Rank : 1
Kingfisher Airlines
Loan not repaid : Rs 2,673 crore
Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air
travel market. The airline faced severe financial crisis at the beginning of 2012 and is
dysfunctional as of now.
The 14 banks, led by State Bank of India, which lent Rs 6,500 crore (Rs 65 billion) to the airline,
are now involved in litigation over the money, as Mallya has sued them in multiple courts.
Today, Mallya owes money to banks, employees, tax officials, caterers, aircraft leasing
companies, fuel supplier Hindustan Petroleum Corporation and to taxi operators, too.
Rank : 2
Winsome Diamond & Jewellery
Loan not repaid : Rs 2660 crore
The company manufactures and exports gold, silver and platinum jewellery studded with
diamonds, colour stones and semi precious stones as well as plain jewellery.
This company is part of Su-Raj Diamonds & Jewellery and holds 49 per cent stake in Forever
Precious Jewellery.
Rank : 3
Electrotherm India Limited
Loan not repaid : Rs 2,211 crore
Electrotherm (India) has been engineering metal melting industry since 1983 and holds a
2,500,000 kW market share in the metal melting industry globally.
Rank : 4
Zoom Developers Private Limited
Loan not repaid : Rs 1,810 crore
Vijay Choudhary and B L Kejriwal are the brains behind Zoom Developers who charted
exponentially growth for the company. But the global financial crisis of 2008 shattered all their
dreams. The group tried to grow faster than they could handle.
Nearly 27 Indian banks, with a majority of public sector banks have lent close to Rs 2,700 crore
to this company. This debt has been admitted in the corporate debt restructuring cell.
Rank : 5
Sterling Biotech Limited
Loan not repaid : Rs 1,732 crore
Sterling Biotech is a pharmaceutical firm with focus on contract research and manufacturing. It
is flag ship company of Sandesara Group, which also owns Sterling Oil Resources.
Rank : 6
S. Kumars Nationwide Limited
Loan not repaid : Rs 1,692 crore
SKNL is one of India’s leading textile and apparel company with expertise in multi-fibre
manufacturing. The company has extended its presence in multiple product categories from
Fabrics to Apparels and Home Textiles.
Rank : 7
Surya Vinayak Industries
Loan not repaid : Rs 1,446 crore
Surya Vinayak Industries is part of Floriana Group based out of New Delhi. According to the
company’s website, Surya Vinayak Industries imports, exports and trade in agri products. It is
also a leading manufacturer of essential oils and other speciality perfumery compounds.
Rank : 8
Corporate Ispat Alloys
Loan not repaid : Rs 1,360 crore
Corporate Ispat Alloys Ltd (CIAL) is a unit of Abhijeet group. According to the company’s
website, Under CIAL the Group has obtained environment clearance for an integrated steel plant
along with 280 MW power plant in Jharkhand.
Abhijeet group has interest in power, mining, steel, roads, and cements.
Rank : 9
Forever Precious Jewellery & Diamonds
Loan not repaid : Rs 1,254 crore
Forever Precious Jewellery & Diamond, a part of Su-Raj Diamonds & Jewellery, supplies an
extensive range of fine jewellery and accessories to jewellers and jewellery manufacturers.
Rank : 10
Sterling Oil Resources
Loan not repaid : Rs 1,197 crore
Based in Mumbai, Sterling Oil Resources Limited is a venture from the Sandesara Group, which
is a $ 6.9 billion group.
The Sandesara group has many successful and diversified ventures. The Sterling Biotech, the
flag-ship company, is listed on NSE and BSE in India, Luxembourg in Europe and Singapore in
Asia.Other leading ventures of Sandesara Group are PMT Machine Tools Limited , Sterling SEZ
Limited, Sterling Ports Limited, Sterling International Enterprises Limited.
Rank: 11
Varun Industries Limited
Loan not repaid: Rs 1,129 crore
Varun Industries is a global conglomerate of businesses which includes stainless steel raw
materials, steel ware, energy, commodity trading and agricultural products.
Rank : 12
Orchid Chemicals & Pharmaceutical
Loan not repaid : Rs 938 crore
Established in 1992 as an export-oriented unit (EOU), Orchid Chemicals & Pharmaceuticals is a
vertically integrated company spanning the entire pharmaceutical value chain from discovery to
delivery.
Rank : 13
Kemrock Industries & Exports
Loan not repaid : Rs 929 crore
Gujarat-based Kemrock Industries & Exports manufactures and exports composite for major
industrial sectors such as aerospace, defense, renewable energy, wind energy, and railways.
Rank : 14
Murli Industries & Exports Limited
Loan not repaid : Rs 884 crore
Nagpur-based Murli industries is leading manufactures of all types of paper & paper boards,
cement, edible oil, pulps, solvent and power.
Rank : 15
National Agricultural Co-Operative
Loan not repaid : Rs 862 crore
Nafed is the government’s procurement agency for non-cereal crops such as cotton, oilseeds and
pulses.
According to a report in Business Standard, loans to National Agricultural Cooperative
Marketing Federation of India (Nafed) by several state-run banks have turned bad, and banks
have classified these as non-performing assets (NPAs). The overall exposure of these banks to
Nafed stands at about Rs 2,000 crore (Rs 20 billion).
Rank : 16
STCL Limited
Loan not repaid : Rs 860 crore
STCL (formerly called as Spices Trading Corporation Limited) is a subsidiary of State Trading
Corporation of India based in Bangalore. The government has recommended winding up of this
loss making public sector company, as it cannot be revived.
Rank : 17
Surya Pharma
Loan not repaid : Rs 726 crore
Surya Phamaceutical started in 1992 and it is an integrated pharmaceuticals company. It focuses
on contract research and manufacturing.
Rank : 18
Zylog Systems (India) Limited
Loan not repaid : Rs 715 crore
Zylog Systems (India) Limited is an Information Technology company registered in Chennai.
Rank : 19
Pixion Media Pvt. Limited
Loan not repaid : Rs 712 crore
As per the Ministry of Corporate Affairs record, Prabodh Kumar Tewari and Anand Kumar
Tiwari are directors of the company.
The company is related to the Century Communication mentioned earlier.
Rank : 20
Deccan Chronicle Holdings Limited
Loan not repaid : Rs 700 crore
Deccan Chronicle Holdings Limited or DCHL publishes the English-language dailies Deccan
Chronicle, Financial Chronicle and Asian Age and the Telugu daily Andhra Bhoomi.
Banks have been taking possession of the DCHL’s property and assets and disposing them off to
recover loans.
Enforcement Directorate is also probing the company over money laundering allegations.
Rank : 21
K.S. Oil Resources
Loan not repaid : Rs 678 crore
Rank : 22
ICSA (India)
Loan not repaid : Rs 646 crore
Hyderabad-based ICSA (India) Limited provides solutions and software for the Energy Sector,
which includes power, oil, natural gas and water.
The Company is also engaged in the business of providing energy Audit solutions.
The focus area for ICSA has been the technology solutions to Power Sector to identify
Transmission and Distribution (T&D) losses and monitor power consumption.
Rank : 23
Indian Technomac
Loan not repaid : Rs 629 crore
Indian Technomac is a mining company that also manufactures silicon, chrome alloys,
Manganese alloys , titanium alloys and nickel.
Rank : 24
Century Communication Limited
Loan not repaid : Rs 624 crore
Century Communication has one of the largest post-production facilities in India under Pixion.
The studio has worked on scores of Indian films (Jail and London Dreams among recent ones),
Hollywood films and ad films.
The company also owns TV channels under the brand name Mahuaa. According to Business
Standard, it’s the Mahuaa bouquet of channels that have caused problems to the company.
Rank : 25
Moser Baer India Ltd. & Group Companies
Loan not repaid : Rs 581 crore
Moser Baer India Limited is a leading global tech-manufacturing company. Established in 1983,
the company is one of the world's largest manufacturers of Optical Storage media like CDs and
DVDs. Every fifth disc manufactured globally belongs to Moser Baer and it is the lowest cost
optical media manufacturer in the world.
Source :
A ll India Bank Employees' Association (AIBEA)
The list, released by the association, is on the data on loan not paid from Public Sector Banks except State Bank of India, IDBI and foreign banks.
NPAs of listed banks jump 35% to cross Rs. 2.43 lakh cr mark: Study
Gross non-performing assets (NPAs) of 40 listed banks shot up 35.2 per cent or Rs. 63,386 crore
to cross the Rs. 2.43 lakh crore mark in the nine months ended December 31, 2013.
This jump of 35.2 per cent was much higher than the 27 per cent rise witnessed in the first six
months of 2013-14, according to a study done by NPAsource.com, a first-of-its-kind portal
which focuses on resolution of stressed assets.
Ten out of the 40 listed banks accounted for nearly 70 per cent of the total gross NPAs. State
Bank of India at 28 per cent (Rs 67,799 crore) has the largest share in total gross NPAs of the 40
listed banks, followed by Punjab National Bank with 7 per cent share (Rs 16,596 crore) and
Bank of Baroda and Central Bank of India with 5 per cent share each.
As of December 31, 2013, Bank of Maharashtra posted the largest increase in gross NPAs of 209
per cent at Rs. 3,516 crore from Rs. 1,138 crore as of March 31, 2013. United Bank reported a
188 per cent jump in gross NPAs at Rs. 8,546 crore at the end of Q3.
Eleven banks posted a 50 per cent plus growth in their gross NPAs, Devendra Jain, Chairman
and Managing Director, Atishya Group, the owner of portal NPAsource.com said here on
Tuesday.
“There is no respite for banks in India from the onslaught of higher interest rates and slowdown
in the Indian economy leading to further increase in loans turning bad from corporate as well as
retail segments. The fourth quarter of 2013-14 will continue to be bad for banks on the NPAs
front, but most banks will resort to higher levels of provisioning so as to bring down their net
NPA levels.”
The first quarter of next financial year, too, will continue to be bad for banks with regard to
NPAs. High concentration of banks’ debt to the top 50-100 corporates is also a major concern
area.
Growth in net NPAs at 49 per cent for the nine months ended December 31, 2013 against a 38
per cent rise in the first six months of 2013-14 is also alarming. Net NPAs have gone up
to Rs. 1.38 lakh crore as of Q3 end from Rs. 93,116 crore at the end of March 31, 2013.
www.thehindubusinessline.comThis article was published on February 18, 2014
Bank staff body lists 406 bad loan a/c worth Rs 70k cr
The All India Bank Employees Association (AIBEA) has released the details of 406 bad
loan accounts with public sector banks. These 406 loans account for non-performing assets
(NPAs) worth Rs 70,300 crore.
“The total NPA in public-sector banks till September, 2013, was Rs 2.36 lakh crore. The bad
loans restructured and shown as good loans amount to another Rs 3.25 lakh crore. This is public
money and it has to be recovered for the benefit of the public,” AIBEA General- Secretary C H
Venkatachalamtold reporters while releasing the list of defaulters here on Tuesday.
Venkatachalam said the NPAs registered by all public sector banks in March 2008 was Rs
39,000 crore. The bad loans constituted by the top four defaulters in public sector banks is
around Rs 23,000 crore and the bad loans in top-30 bad loan accounts in 24 banks is Rs 70,300
crore. Fresh bad loans in public sector banks in the last seven years is Rs 4.95 lakh crore.
According to AIBEA, bad loans written off in the past 13 years come to the tune of Rs 2.04 lakh
crore. Profits transferred and adjusted for provisions toward bad loans from 2008 to 2013 was Rs
1.40 lakh crore. The bad loans in 172 corporate accounts of Rs 100 crore or above was Rs 37,000
crore, it added.
AIBEA also demanded that the government release the list of major loan defaulters and make
loan-recovery norms stringent so that action under criminal procedure can be taken against wilful
defaulters.
If top bank executives are responsible for the increase in NPA, then there should be investigation
against them and, if found guilty, they should be punished, the Association said.
According to Venkatachalam, political as well as corporate nexus was also a reason behind the
increase in NPAs. Almost 65 per cent of the total bad loan is taken by industry, he added.
http://www.business-standard.com/
May 7, 2014