India's Loan Defaults Persist a Decade After RBI's Asset Quality Review

Wilful Defaulters in India: A Growing Concern

Key Statistics

• 18,000 borrowers with outstanding dues of Rs 3.83 lakh crore as of March 2025
• 9,070 defaulters with outstanding debt of Rs 89,889 crore in FY16
• 4-fold increase in the number of defaulters in the last decade
• 10% of the total default amount owed by the 10 largest defaulters, totaling Rs 40,000 crore

Recent Trends

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• The number of defaulters peaked at 18,876 in FY24, decreasing slightly to 18,318 in FY25
• The total outstanding debt owed by defaulters has increased, reaching Rs 3.83 lakh crore in FY25, the highest in the last decade
• The quantum of default jumped from Rs 2.18 lakh crore in FY20 to Rs 3.60 lakh crore in FY23

Top Defaulters

• ABG Shipyard with outstanding debt of Rs 6,695 crore in FY25
• Gitanjali Gems with outstanding debt of Rs 6,236 crore in FY25
• Beta Napthol has been on the list for 4 consecutive years
• Bhushan Power and Steel has appeared on the list for 3 consecutive years

Notable Trends

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• Defaulters who feature more than once in the list have seen an increase in the quantum of default over the years
• For example, Gitanjali Gems had an outstanding debt of Rs 5,000 crore in FY20, increasing to Rs 6,236 crore in FY25
• ABG Shipyard had an outstanding debt of Rs 1,874 crore in FY18, increasing to Rs 6,695 crore in FY25, a nearly 5X surge