MUMBAI: India's state-owned banks had classified ₹1.50 trillion worth of loans as "wilful defaults" in 2018-19, with the biggest lender State Bank of India accounting for nearly a third, the finance minister said in the parliament. Under Indian law, wilful defaulters are classified as firms or individuals who own large businesses and deliberately avoid repayments. Wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and they are debarred from launching ventures for five years. The government has debarred wilful defaulters and companies with wayward borrowers from accessing capital markets to raise funds or participate in insolvency resolution process. Public-sector banks filed 1,475 police complaints against wilful defaulters in the last three financial years, the finance minister added.

Source: Mint July 02, 2019 13:29 UTC