The Reserve Bank of India has directed banks to initiate insolvency proceedings in the case of 12 corporate bodies with outstanding loans of over ₹5000 Crore each and with at least 60% of it declared Non Performing Assets.

The information, contained in a written reply to questions put by Ritabrata Banerjee, suspended from the CPI(M), also admitted that in less than three years after the NDA Government took over, public sector banks had written off as much as ₹2.41 lakh Crore.

The Government, however, declined to name the defaulters, taking refuge in section 45 E of the Reserve Bank of India Act which prohibits RBI from disclosing credit information given by banks.

“The denial mode of the BJP Government continues. The Finance Minister is not even ready to answer whether the non repayment of loans by the countries’ biggest corporate houses is a major factor for the huge accumulation of NPAs in our public sector banks. But the Government’s commitment towards the big corporates are unflinching and the Government is committed not to disclose their name,” said Banerjee.