After rising by close to Rs 50,000 crore in fiscal 2023, banks are expected to witness a spike in wilful defaults following the Reserve Bank of India (RBI) proposal to classify a borrower as wilful defaulter within six months of the account becoming a non-performing asset (NPA).
According to TransUnion Cibil, wilful defaults rose by nearly Rs 50,000 crore to Rs 353,874 crore involving 16,883 accounts as of March 2023 as against Rs 304,063 crore (14,899 accounts) in March 2022. The State Bank of India (SBI) reported 1,921 wilful default accounts, involving Rs 79,271 crore, Punjab National Bank Rs 41,353 crore, Union Bank Rs 35,623 crore, Bank of Baroda Rs 22,754 crore, and IDBI Bank Rs 24,192 crore.
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