In his meeting with heads of state-owned banks, Chidambaram said the "promoter is prosperous but company is sick" is not an acceptable position, and asked banks to "form a consortium and take joint action against such defaulters".
While addressing the bankers, he said they need to redouble efforts for the recovery and take tough measures against wilful defaulters. The top 30 non-performing assets (NPAs) of state-owned banks account for 40.2 per cent of their Gross NPAs.
Financial Services Secretary G S Sandhu said banks have been asked to focus on their top 30 defaulters. There will be tough action against wilful defaulters, which can include even the change of management because so much money is stuck. Banks have to provide huge amount in terms of provisioning, about Rs 90,000 crore going into provisioning.