According to the data from credit information bureau CIBIL, more than 5,600 borrowers, who owe banks close to Rs 60,000 crore, have been declared wilful defaulters by lenders as on December 31. These instances of wilful default are those where banks have filed suits.
- The country’s largest lender State Bank of India (SBI) is owed Rs 12,091 crore, followed by another state-run lender Punjab National Bank (PNB) which has receivables of Rs 9,445 crore lent to 698 borrowers.
- Kotak Mahindra Bank has the highest amount of loans stuck with wilful defaulters among private sector banks at Rs 5,442 crore.
- Wilful defaults for private sector banks stood at Rs 10,250 crore and at Rs 463 crore for foreign banks.
According to RBI guidelines, a borrower is termed a wilful defaulter if he has defaulted in meeting the repayment obligations to the lender even when it has the capacity to repay, or has not utilised the money from the lender for the specific purposes for which finance was availed and has diverted the funds for other purposes.
CIBIL
- Credit Information Bureau (India) Limited is India’s first Credit Information Company (CIC) founded in August 2000.
- CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards.
- These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis.
- This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to credit institutions in order to help evaluate and approve loan applications.
- CIBIL was created to play a critical role in India’s financial system, helping loan providers manage their business and helping consumers secure credit quicker and on better terms.
