On December 5, 2013, the All India Day will be observed as per the plans of The All India Bank Employees Association (AIBEA) in regards to finding a solution regarding the hike in bad loans, especially in the Public Sector Banks (PSBs), the bad loans have increased drastically due to corporate and big borrowers.
In March 2008, the bad loans were at Rs.39, 000 crore, however as of March 2013, it has increased to Rs.1, 64,000 crore. Furthermore the bad loans have been rebuilt and indicated as exceptional credits and they produced for Rs.3, 25,000 crore. Of the rebuilt advances, Rs.2, 70,000 crore was in favour of corporate borrowers.
The procurements made for bad loans from the benefits earned by the banks has been developing and it has developed to Rs.43,102 crore in 2012-13, from Rs.11,121 crore in 2008-09 representing Rs.1,40,266 crore as provisioning throughout the five years.