Who are the biggest Banking Loans defaulters in India -Industry wise.

Harsh Vardhan Singh

Banker (PSB), Engineer-Projects Planning & Sales (Ex), an Artist & Blogger

Some top industry and their prime reasons are listed below.

• Textiles Industry

Huge competition from SE Asian countries has lead to low demand and hence when you start making loses which is not under your control it is pretty evident that default will take place.

• Mining Industry

Recently the cancellation of mines allotted by the SC has lead to major problems in this industry. One must understand one thing is webbed with other. If A was caught in ill practices and have been barred, it leads to problems of stalled projects in other segment. Hence defaults.

• Steel Industry

Cheap steel from China has created huge problems for the Steel Industry. Even though we have Anti dumping laws but still we cannot be too tight and face troubles in the WTO.

Imagine the situation here, again some market forces creates trouble for these big industry and hence as they are related to each other it creates problems.

• Infrastructure Industry

Many reasons like over leveraging before the sub prime crises (2007). Here it's again complicated with stalled projects and hence 24% of loans are stressed.

Eventually it may lead to defaults in various scenario.

• Aviation

Policies related to ATF fuels and foreign flights have lead to 61% of loans stressed.

Although, I am not defending all the defaulters. Some defaulters like Vijay Malaya should be penalized by not repaying the loans even if he is capable of. This can be subject to debate so I am ending this here.

Is taxpayers money used to leverage these loans in anyway?"

These loans are taken from banks and currently if you check the PSB then we have 4 Lakh crore worth of NPA. Our Stressed assets are 8 Lakh crores.

In a way Taxpayers money are used to leverage these loans because we cannot allow our banks to collapse and create economic turmoil.

Finally no one knows whose names are there in the list but I have provided you the gist of defaulters in terms of Industry.

Soon if the SC wishes you may get the list but that is truly bad for economic growth as not every defaulter is a willful defaulter or sinner. Business involves risks and someone has to pay for it.Views are personal.