In a significant disclosure, the Ministry of Finance revealed that as of March 31, 2025, 1,629 corporate borrowers have been identified as wilful defaulters by public sector banks. These borrowers collectively owe a staggering Rs 1.62 lakh crore, according to information shared with the Rajya Sabha. The data, excluding overseas borrowers, is compiled based on reports submitted by banks to the Central Repository of Information on Large Credits (CRILC).

Minister of State for Finance Pankaj Chaudhary stated, “As per data reported by public sector banks in the Central Repository of Information on Large Credits (CRILC), as on March 31, 2025, 1,629 unique borrowers with aggregate loan outstanding of Rs 1,62,961 crore were classified as wilful defaulters.” This highlights the scale of the financial challenge faced by the banking sector.

The government has emphasised the measures being taken against these defaulters, which include the denial of additional credit facilities and restrictions on launching new ventures for a period of five years. Companies associated with these defaulters are also prohibited from accessing capital markets, limiting their ability to raise funds. This approach aims to deter future defaults and maintain financial discipline.

The Reserve Bank of India’s Master Directions mandate banks to submit monthly lists of wilful defaulters to all Credit Information Companies (CICs). These lists, which include loans of ₹25 lakh and above, are publicly accessible on the websites of companies such as CIBIL and Experian. This transparency ensures that stakeholders are well-informed about potential risks.

Moreover, Pankaj Chaudhary noted that “banks may also initiate criminal proceedings against wilful defaulters in eligible cases.” This points to the severity of the situation and the government’s commitment to addressing it. Legal actions serve as a deterrent and reinforce accountability among borrowers.

In addition to domestic measures, the government is dealing with defaulters who have fled the country. Under the Fugitive Economic Offenders Act, nine individuals have been declared as fugitive economic offenders, with assets worth Rs 15,298 crore confiscated under the Prevention of Money Laundering Act (PMLA). This demonstrates the government’s resolve to pursue offenders beyond national borders.

The Ministry of Finance further disclosed that “assets amounting to Rs. 25,806.38 crore (approx.) have been restituted in bank fraud cases to the victim banks/ legitimate claimants under PMLA which includes amount confiscated as well as the attached amount restituted during the trial before Confiscation.” This indicates a proactive approach to asset recovery, ensuring that funds are returned to rightful owners.

Overall, the government is intensifying efforts to curb wilful defaults, which have significant implications for the banking sector’s stability and economic health. The steps taken reflect a focus on accountability and the prevention of further financial misconduct. Additionally, the government has been proactive in addressing the challenges posed by international defaulters