CBI, India's premier investigating agency, has raided corporate loan defaulters in 12 states

In a major crackdown against bank loan defaulters, the Central Bureau of Investigation (CBI) on Tuesday searched more than 50 locations in 12 states and Union Territories, officials said.

A CBI official said several teams carried out the raids in 18 cities including the residence and business premises of companies, promoters, directors and bank officials.

The searches started on Tuesday morning.

India has a huge pile of bad loans and much of it is unpaid loans from large corporate borrowers. The new bankruptcy laws and escalating regualtory pressure has reduced some of the pressure but still nearly one in every ten rupees in lent is unpaid. "The share of large borrowers (in gross non-performing loans) fell about 200 basis points (bps), but their stress(ed) assets fell 120 bps only. This implies a slower offtake in advances in the segment, rather the recoveries," a recent report by Dolat Capital said.

With inputs from IANS

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