NeSL data shows Rs 14.63 lakh crore loan defaults as on 30 June 2023
The sole information utility entity – NeSL – has listed Rs 14.63 lakh crore total defaults as reported by various creditors on its platform as on end of June quarter. Of the Rs 14.63 lakh crore reported defaults, corporates account for Rs 13.51 lakh crore defaults while individuals and other commercial entities accounted for the rest.
Individual cases of defaults accounted for Rs 22,587 crore.
According to the latest newsletter from NeSL, default per cent by default amount is highest in the debt size 10-100 crore for the company segment. As high as 45.6% of the total corporate default is accounted by this category (Rs 10-1,000 crore).
In individuals’ category, 65% of the defaults were in the category of less than Rs 1 crore, while 18% were those in the Rs 1-5 crore category.
| Debtor Category | Debt Size | Count of Debtors in Default | Count of Default Reported Debt records | Default Amount Reported to IU (Rs Cr) | Outstanding Amount of defaulted records (Rs Cr) | Total Outstanding Amount of all debt records (Rs Cr) |
| Corporate | <1 CR | 26,254 | 56,471 | 15,055 | 10,818 | 3,14,713 |
| 1-5 CR | 8,604 | 15,015 | 28,679 | 36,628 | 6,56,532 | |
| 5-10 CR | 3,643 | 5,441 | 32,558 | 39,025 | 5,12,226 | |
| 10-100 CR | 5,177 | 12,285 | 3,59,794 | 4,19,983 | 33,14,784 | |
| 100-1000 CR | 1,299 | 3,206 | 6,84,580 | 8,04,690 | 66,77,579 | |
| 1000-10000 CR | 102 | 159 | 2,30,929 | 2,91,983 | 54,02,934 | |
| >10000 CR | – | – | – | – | 12,45,595 | |
| Total | 34,344 | 92,577 | 13,51,594 | 16,03,128 | 1,81,24,363 | |
| Other Commercials Entities | <1 CR | 5,52,937 | 6,40,409 | 21,335 | 33,097 | 5,91,164 |
| 1-5 CR | 11,582 | 13,434 | 18,631 | 28,573 | 4,50,469 | |
| 5-10 CR | 1,716 | 1,872 | 9,125 | 12,897 | 1,50,527 | |
| 10-100 CR | 1,210 | 1,451 | 25,179 | 34,900 | 2,52,919 | |
| 100-1000 CR | 63 | 77 | 14,710 | 19,953 | 2,22,827 | |
| 1000-10000 CR | 1 | 1 | 0 | 1,231 | 2,15,715 | |
| >10000 CR | – | – | – | – | 30,206 | |
| Total * | 5,61,618 | 6,57,244 | 88,980 | 1,30,652 | 19,13,826 | |
| Individuals | <1 CR | 6,32,998 | 7,31,202 | 14,674 | 37,019 | 14,87,076 |
| 1-5 CR | 5,649 | 6,191 | 4,162 | 11,323 | 2,23,157 | |
| 5-10 CR | 355 | 384 | 1,325 | 2,542 | 37,801 | |
| 10-100 CR | 108 | 132 | 1,751 | 2,671 | 36,233 | |
| 100-1000 CR | 4 | 5 | 675 | 989 | 5,234 | |
| 1000-10000 CR | – | – | – | – | – | |
| >10000 CR | – | – | – | – | – | |
| Total | 6,37,580 | 7,37,914 | 22,587 | 54,545 | 17,89,501 | |
| Total | 12,19,645 | 14,87,735 | 14,63,161 | 17,88,324 | 2,18,27,690 | |
According to NeSL, in some default records, value of the Outstanding Amount is reported as less than the value of the Default Amount. The information utility has taken up with the submitter for clarification on the same.
After including those default cases that were not reported by creditors, corporates had defaulted loan amount of Rs 16.03 lakh crore at the end of June 2023 quarter. Manufacturing companies with 29% defaulted loans accounted for the maximum non-payment of loans at the end of the said quarter, followed by Real estate, renting and business activities (18%) and construction 16%.
In terms of unique debtors, there were 357,363 corporate debtors who accounted for outstanding loans of Rs 181.24 lakh crore at the end of June 2023 quarter. Of the total outstanding loans of Rs 181.24 lakh crore, only Rs 57,451 crore debt were due to operational creditors.
Individuals accounted for Rs 17.89 lakh crore loan outstanding as of end of June quarter, according to data released by NeSL.
About NeSL
NeSL is India’s first and only Information Utility and is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016 (IBC). The company has been set up by leading banks and public institutions. The primary role of NeSL is to serve as a repository of legal evidence holding the information pertaining to any debt/claim, as submitted by the financial or operational creditor and verified and authenticated by the parties to the debt.
According to the latest NeSL newsletter, since Q1 of 2022-23 till Q1 of FY 2023-24, there is 99% growth in number of debt records across debtor categories uploaded by creditors.
There is 63% growth in Other Businesses category and 133% growth in Individual category. Compared to Q1 of FY 2022-23, in Q1 of FY 2023-24, there is growth of 2.4% in the corporate category debt records, however growth in terms of debt value is 20%.
Also Read: Quarterly global defaults reach highest level since 2020
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