The Supreme Court of India has today directed the Reserve Bank Of India (RBI) to submit the list of the biggest loan defaulters where loans of Rs 500 Cr or more were written off by public Sector banks.
The apex court has given the RBI six weeks to submit a report. SBI, the country’s largest lender, has reported a sharp decline in profit. The Bank of India, another major lender, has recently posted losses for the third quarter. The financial performance of the state-owned banks is also very bad.
Many banks are creaking under the burden of bad loans issued. By end of December 2015, Rs 7 lakh crore worth loans were classified either as non-performing due to borrowers not repaying the principal or restructured. About 25 banks together wrote off Rs 25,000 crore loans in the third quarter of current fiscal that ended on December 31, 2015.
