The NPA Saga : 12 Mega Loan Defaulters

RBI sent ripples through the financial industry last month when it listed 12 large companies with stressed accounts for insolvency proceedings. RBI ‘s push forced banks to clean-up their balance sheets by disclosing all the hidden NPAs. While these measures uncovered big chunks of impaired assets, its effectiveness to recover the money is yet to be seen. In this series ‘The NPA Saga’ Nexensus takes a closer look at each of these defaulters and their tryst with various lenders.

Although RBI has yet to officially name any of the 12 companies, various sources have confirmed these to be the top contenders.  These companies account for nearly 3 trillion rupees of all the country’s bad loans. Interestingly largest lenders in almost all the cases are government backed.

12 Mega Loan Defaulters & the NPA Contribution

Sbicap Trustee Company Limited is the largest lender to 5 of the 12 companies in the defaulters list. It is easy to spot that the largest lenders in almost all the cases are government backed. Interestingly a lot of companies with extremely dismal percentage of loans satisfied and high borrowings have been excluded from this list.

Company NameTotal Loan Amount Taken (INR Cr) Loan Amount Repaid (%)Largest Lender
Era Infra Engineering Limited27728.54724.35%Sbicap Trustee Company Limited
Amtek Auto Limited1381815.26%Corporation Bank
Jyoti Structures Limited17703.10917.62%Sbicap Trustee Company Limited
Lanco Infratech Limited30412.8234.16%Ifci Limited
Jaypee Infra Limited41430.7542.25%Axis Trustee Services Limited
ABG Shipyard Limited34663.6915.04%Indian Overseas Bank
Monnest Ispat and Energy Limited21229.30811.35%Sbicap Trustee Company Limited
Electrosteel Steels Limited32582.3563.22%State Bank of India
Alok Industries Limited87989.21121.6%Sbicap Trustee Company Limited
Bhushan Power & Steel Limited81515.01518.45%State Bank of India
Bhushan Steel Limited105210.72612.08%Sbicap Trustee Company Limited
Essar Steel India Limited111946.81636.8%Axis Trustee Services Limited

Nexensus - NPA and Defaulters

Essar Steel Limited has taken the highest amount of loan (111946.81 crore rupees) while Bhushan Steel Limited has the highest amount of outstanding loan at 92501.2 crore rupees.

Cumulatively the Bhushan Group alone accounts for roughly 35% of the total NPA of this group.

Electrosteels Steels Limited is an outlier in this list with close to 63.22% of its loan paid. It accounts for a mere 2.58% of the total NPA’s from this group of companies.

This also brings to light the non-quantifiable factor of ‘intent’. As in the case of Lanco Infratech Limited with only 4% of the total loan repaid.

It  thus becomes potent to study the companies intent to repay alongside the amount outstanding. Promoter background checks, history, related company analysis and transaction pre and post loan disbursement become necessary.

Watch Out for More

In this article, we have shared a snapshot of 12 large defaulters. In following articles we will cover each defaulter in details  and also other large defaulters that significantly contribute to the NPA (Non Performing Assets).  ‘The NPA Saga’ will also cover lenders that have suffered the most and their failures to perform proper due – diligence.

Data Sources

This information is collated using Nexensus Tool and Database. To know more or get access reach out to us:

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