40 firms account for 50% of bank bad loans, House panel told

The Centre has told the Parliamentary Standing Committee on Finance that 40 major companies in the country account for 50 per cent of the total non-performing assets (NPAs) or bad loans in various banks.

The Centre is also learnt to have told the panel that if the banks follow the guidelines of the Reserve Bank of India strictly, the amount of NPAs may rise.

The panel members have asked the government to submit the list of defaulters and the amount owed.

On Thursday, the panel started taking oral evidence of various departments on the issue. The representatives of the Finance Ministry (Department of Financial Services), Nabard and SIDBI appeared before it. “The meeting was inconclusive. We will meet these representatives again on the issue,” a member said.

Headed by Congress leader Veerappa Moily, the panel had selected NPAs as a subject last year.

It is likely to submit a report on the subject during the Monsoon session of Parliament.

The Opposition parties have been urging the Centre to take steps to recover liabilities of big companies and use that amount for welfare.

Meanwhile, the Standing Committee on Information Technology met representatives of BSNL, Bharti Airtel, Vodafone India and Idea Cellular Ltd on net neutrality and frequent call drops.

“We have got a number of complaints from the consumers. We wanted to hear the views of service providers as well. The process will continue,” a member in the panel said. All the three companies submitted their views on net neutrality.

An in-depth study is necessary on this new subject of net neutrality, said member of the Committee and CPM leader P Karunakaran, adding that “the main issue is that common people should get the benefits and it should not be at the will and pressure of private companies.”

Telecom Regulatory Authority of India, Telecom Ministry, private companies and other stakeholders will be consulted before taking a final call, he added.

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