Central Office: “PRABHAT NIVAS” Regn. No. 2037 Singapore Plaza, 164, Linghi Chetty Street, Chennai-600 001 Phone: 2535 1522 Web: www.aibea.in e mail : chv.aibea@gmail.com & aibeahq@gmail.com
CIRCULAR NO. 29/205/2025/52
17-7-2025
TO ALL OUR UNIONS AND MEMBERS
Dear Comrades,
In the last two decades we have observed that huge loans given to private corporate companies have turned bad and Banks are burdened with large Non-Performing Assets. It is claimed that private sector is more efficient than public sector. Then, how come all the huge bad loans and NPAs are only on account of the private companies?
The following data would show the clear picture of the alarming increase in bad loans.
(Rs. in Crores)
As on 31st March | Gross NPA |
|---|---|
2012 | 1,17,000 |
2013 | 1,64,461 |
2014 | 2,16,739 |
2015 | 2,78,877 |
2016 | 5,39,955 |
2017 | 6,84,732 |
2018 | 8,95,601 |
2019 | 7,39,554 |
2020 | 6,78,318 |
2021 | 6,16,615 |
2022 | 5,42,173 |
2023 | 4,28,199 |
2024 | 3,48,457 |
2025 | 2,90,347 |
Instead of taking stern action on the defaulting companies to recover these loans, they have been given huge concessions and Banks are incurring huge haircuts and losses.
(Rs. in Crores) | ||||
|---|---|---|---|---|
Borrower | Loan Amount | Settled and resolved for | Haircut for Banks in % | Purchased by |
Essar | 54000 | 42000 | 23 | Arcelor Mittal |
Bhushan Steels | 57000 | 35000 | 38 | Tatas |
Jyothi Structures | 8000 | 3600 | 55 | Sharad Sanghi |
DHFL | 91000 | 37000 | 60 | Piramal |
Bhushan Power | 48000 | 19000 | 60 | JSW |
Electrosteel Steels | 14000 | 5000 | 62 | Vedanta |
Monnet Ispat | 11500 | 2800 | 75 | JSW |
Amtek | 13500 | 2700 | 80 | DVIL |
Alok Industries | 30000 | 5000 | 83 | Reliance + JM Fin |
Lanco Infra | 47000 | 5300 | 88 | Kalyan Group |
Videocon | 46000 | 2900 | 94 | Vedanta |
ABC Shipyard | 22000 | 1200 | 95 | Liquidation |
Sivasankaran Industries | 4800 | 320 | 95 | Father-in-law |
(Rs. in crores)
Gross Operating Profit | Provisions for bad loans, etc | Net profit / Loss after provisions | |
|---|---|---|---|
2008-09 | 66,604 | 32,231 | 34,373 |
2009-10 | 76,945 | 37,603 | 39,342 |
2010-11 | 99,982 | 55,080 | 44,902 |
2011-12 | 1,16,344 | 66,830 | 49,514 |
2012-13 | 1,21,839 | 71,256 | 50,583 |
2013-14 | 1,27,653 | 90,633 | 37,019 |
2013-14 | 1,37,760 | 1,00,901 | 37,540 |
2015-16 | 1,36,275 | 1,53,967 | loss - 18,417 |
2016-17 | 1,58,982 | 1,70,370 | loss - 11,388 |
2017-18 | 1,55,585 | 2,70,953 | Loss - 85,370 |
2018-19 | 1,49,804 | 2,16,410 | Loss - 66,606 |
2019-20 | 1,73,594 | 1,99,612 | Loss - 26,018 |
2020-21 | 1,94,863 | 1,63,043 | 31,820 |
2021-22 | 2,01,172 | 1,34,632 | 66,540 |
2022-23 | 2,39,667 | 1,35,018 | 1,04,649 |
2023-24 | 2,66,065 | 1,24,862 | 1,41,203 |
2024-25 | 3,13,058 | 1,26,001 | 1,87,056 |
What is the magic – How so many NPA companies are taken over by Adani
Company under Resolution | Purchased by | Admitted claim value | Purchased for | Haircut for Banks |
|---|---|---|---|---|
1. HDIL (Project BKC) | Adani Properties | 7,795 | 285 | 96 % |
2. Radius Estates & Developers | Adani Goodhomes | 1,700 | 76 | 96 % |
3. National Rayon Corporation | Adani Properties | 1,175 | 160 | 86 % |
4. Essar Power M.P. Ltd | Adani Power Ltd | 12,013 | 2,500 | 79 % |
5. Dighi Port Limited | Adani Port & SEZ Ltd | 3,075 | 705 | 77 % |
6. Lanco Amarkantak Power | Adani Power | 15,190 | 4,101 | 73 % |
7. Coastal Enrgen Ltd | Adani Power Ltd | 12,300 | 3,500 | 72 % |
8. Aditya Estates | Adani Properties | 593 | 265 | 55 % |
9. Karaikal Port | Adani Port & SEZ Ltd | 2,959 | 1,485 | 43 % |
10. Korba West Power Company | Adani Power Ltd | 5,032 | 2,900 | 42 % |
Total Rs. in Crores | 61,832 | 15,977 | 74 % | |
Banks represent the people’s money and hard-earned savings. This precious money should be available for public welfare and people’s interest. But we observe that there is daylight robbery in the name of bad loans, provisions, wrote off and huge losses for the Banks. People’s money is used to build crony capitalism in our country.
Public sector Banks are nation building institutions. They must remain so. For that we should continue our campaign amongst the people to increase their awareness. We must continue our efforts to strengthen public sector Banks and defeat the attempts of privatisation of Banks.
Yours Comradely,
C.H. VENKATACHALAM GENERAL SECRETARY
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