Banks bad loans: SFIO crackdown on big defaulters

In a bid to cut down on bad loans and defaulters, Serious Fraud Investigation Office (SFIO) have begun investigating the details of non-performing asset (NPA) accounts of public sector banks that may have violated rules.
 
According to a national business daily, an established steel company and one of the biggest defaulters is likely to face the heat of SFIO probe in concern with the violation of rules including diversion of funds for purposes other than the purposes cited to get the loans. While another DTH services major may also be in the SFIO radar for the same cause. 
 
While most of the bad loans are an outcome of business failures, the officials speculate that a fraction of bad loans may also be an outcome of fraud and malpractices.  
 
The massive bad loans issue has also given rise to ‘twin balance sheet problem’ with the debt-laden companies and banks burdened with bad-loans infecting the investments in the economy.    
 
SFIO is also expected to launch a clampdown on 5-10 more bigwig business houses of the nation who are on the defaulters list of the government.