Most Public sector Banks and many Private sector Banks are now in deep trouble. These Banks were robbed by corrupt Private sector companies (many belonging to Infrastructure, Real estate projects) and individuals. The so called Willful defaulters.

The clean up of Banking sector will take a long time. Meanwhile the lending will get stricter both for companies as well individuals. Supreme Court as well as RBI is now aggressively investigating willful defaulters and all options to recover bad loans to be considered. Including filing criminal cases and expropriating assets of willful defaulters.

All this means significant slowdown of credit cycle in Indian economy. Those who have the cash to buy RE are the kings.

Super rich defaulters push Indian banks towards collapse
It's not the poor farmers or the middle class who are defaulting on their loans. It's the country's super rich, businessmen and the upper middle class with loan amounts of over Rs 1 crore who account for a staggering 73% of the unpaid loans to banks.

What is worse is that just the top 30 cases of default account for a Rs 1.21 lakh crore, which is almost 40% of the Non Performing Assets (NPAs) in banks. The upper middle class, who usually takes loans of over Rs 1 crore, accounts for 33% of the total NPAs.

Read more at:
Super rich defaulters push Indian banks towards collapse | Latest News & Updates at Daily News & Analysis
Read more
0 Replies
Sort by :Filter by :
No replies found for this discussion.