Over 1,600 wilful corporate loan defaulters owe PSU banks ₹1.63 lakh crore: Govt

Over 1,600 corporate borrowers have been classified as wilful defaulters by public sector banks with outstanding loans amounting to nearly ₹1.63 lakh crore, the government informed Rajya Sabha on Tuesday.

“As per data reported by public sector banks in the Central Repository of Information on Large Credits (CRILC), as on March 31, 2025, 1,629 unique borrowers with aggregate loan outstanding of ₹1,62,961 crore were classified as wilful defaulters,” Minister of State for Finance Pankaj Chaudhary said in a written reply.

He said banks have been directed to submit lists of wilful defaulters to all credit information companies every month, which are displayed publicly on their websites.

Chaudhary listed several measures taken against wilful defaulters, including denial of additional credit facilities, debarment from floating new ventures for five years, ineligibility to access capital markets, and prohibition of credit restructuring while in default.

“Banks may also initiate criminal proceedings against wilful defaulters in eligible cases,” he added.

The minister further stated that the Fugitive Economic Offenders Act, 2018, has been enacted to attach and confiscate properties of fugitive offenders, including wilful defaulters, and bar them from defending civil claims in India.

On action against large defaulters located overseas, Chaudhary said that as per RBI directions, wilful defaults at overseas branches of Indian banks are reported to credit information companies unless prohibited by host country laws.

He informed that nine individuals declared as fugitive economic offenders under the Act have seen assets worth around ₹15,298 crore confiscated under PMLA provisions, and assets worth ₹749 crore confiscated under the FEOA.

“Moreover, assets amounting to Rs. 25,806.38 crore (approx.) have been restituted in bank fraud cases to the victim banks/ legitimate claimants under PMLA which includes amount confiscated as well as the attached amount restituted during the trial before Confiscation,” the ministry stated.