New Delhi, March 17, 2017
There are rising concerns over mounting bad loans in the banking system
Public sector banks have suffered a loss of Rs 6,769 crore due to default by shuttered airlines, the government said on Friday.
Without giving specific details, Minister of State for Finance Santosh Kumar Gangwar told the Lok Sabha that public sector banks make all efforts to recover the dues.
"Public sector banks have reported loss of Rs 6,769 crore as on December 31, 2016 on account of default by shut down or closed airlines," he said in a written reply.
There are rising concerns over mounting bad loans in the banking system. Among others, lenders have been finding it hard to recover dues in the case of defunct Kingfisher Airlines.
To a query on whether some senior bank officials were found in collusion with the closed airlines that have defaulted, Gangwar said in such instances action is taken as per the bank's disciplinary rules.
"... Action is initiated by banks as per their extant rules and commensurate punishment is awarded to delinquent employees based on the seriousness of wrongdoings as per Bank's disciplinary rules," the minister said.
[The Business Standard]