Demonetisation: Rs 3.89 lakh crore owed to banks by 2,071 industrialists

NEW DELHI: Loan accounts with a cumulative exposure of Rs 3.89 lakh crore held by as many as 2,071 industrialists, each of whom has borrowed Rs 50 crore or more, have turned into non-performing assets (NPAs), or bad loans, Parliament was informed on Tuesday. Minister of State for Finance Santosh Kumar Gangwar told the Rajya Sabha in a written reply that as of June 30, 2016, NPA accounts with a debt exceeding Rs 50 crore numbered 2,071 with a total outstanding amount of Rs 3,88,919 crore. "In terms of instructions of Reserve Bank of India (RBI), every bank has to have its own recovery policy, including the manner and procedure of write-offs," the minister said. In respect of technical write-offs, RBI has permitted write-offs at the head office level, while recovery efforts are still continued at the branch level, he added.