Wilful defaults took a turn for the worse in Apr-Dec amid pandemic
A bank can label a borrower as a wilful defaulter if a loan is not repaid despite having the means to repay (Since the IL&FS defaults, it can be noted that NBFCs and housing finance companies (HFCs) were facing a crisis of confidence, sending call money rates higher and overall liquidity tight. Indian banks classified ₹28,784 crore of loans as wilful defaults in the April-December period of 2020, when the coronavirus pandemic swept across India, up from ₹23,783 crore a year ago A bank can label a borrower as a wilful defaulter if a loan is not repaid despite having the means to repay, and also when the loan is used for a purpose different from what it was taken for. According to the latest data on suit-filed accounts from credit bureau TransUnion Cibil, the total outstanding wilful default as of 31 December now stands at ₹2.4 trillion. India’s largest lender, State Bank of India (SBI), accounts for ₹62,709 crore in this, adding ₹18,026 crore in the April-December 2020 period alone....