Saturday 5 May 2018

PNB's bad-loan woes mount to over Rs 151 bn on back of Nirav Modi fraud

Punjab National bank, PNB

Big wilful defaulters owed Rs 151.72 billion in loans to Punjab National Bank at the end of March this year.

The data from the bank relates to those wilful defaulters who have taken loans of Rs 25 lakh and above but did not repay despite the ability to do so.

The liability on such defaulters rose by 1.8 per cent from Rs 149.04 bn in February.

The public sector lender has been putting out the names of wilful defaulters and firms since June 2017. Within ten months, these defaults have grown by 28 per cent, from Rs 118.79 bn.

The major wilful defaulters include chemical manufacturer Kudos Chemie Ltd -- Rs 13 billion; Kingfisher Airlines -- Rs 5.97 bn ; VMC Systems Ltd -- Rs 2.96 bn; Arvind Remedies -- Rs 1.58 bn and Indu Projects Ltd Rs 1.02 bn.

All these companies were provided loans by PNB as part of consortium lending.

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