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FM refuses to reveal bank-defaulters' names

Finance Minister Yashwant Sinha today refused to disclose the names of all defaulters of banks on the ground that it was paramount that their confidentiality was maintained.

However, Sinha said that the government has strengthened the Debt Recovery Tribunal Act, DRT Act, and the names of all defaulters - of over Rs 1 million -- are being placed in the library of Parliament.

In order to prevent standard assets from becoming substandard assets, some public sector banks have taken pro-active steps include putting account under special watch if the accounts is irregular at the end of one quarter, credit audit and scanning of the economic environment.

He said the proposed asset reconstruction company is under examination of the Reserve Bank of India, or RBI.

Giving statistics of non-performing assets, or NPAs, Sinha said in 1993 gross advances made by public sector banks were Rs 39.253 billion, accounting for 23.2 per cent. Now it stood at Rs 517.10 billion, which is 15.9 per cent of NPA.

NPAs of all Indian financial institutions would work out to be around Rs 580 billion, he said.

Statistics-wise, the NPA ratio of total bank advances comes to 40 per cent. Priority sectors like agriculture, small-scale industries, etc. account for 43 per cent of the NPAs and 53 per cent is the share of non-priority sector.

UNI

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