CA Sansaar
₹1.44 Lakh Crore Defaults Trouble Central Bank of India, Over 4,900 Cases Initiated
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Central Bank of India is dealing with significant stress from large corporate loan defaults totalling around ₹1.44 lakh crore, as per data available up to January 2026. The bank ranks seventh among public sector lenders in terms of recoveries from major defaulters. Data from TransUnion CIBIL indicates that it has initiated 4,903 recovery cases nationwide, while overall large-value defaults across PSU banks have crossed ₹29 lakh crore.
Among the biggest defaulters is the Videocon Group, with dues of ₹25,299 crore. The group, led by Venugopal Dhoot, had availed multiple loans from the bank and is currently undergoing insolvency proceedings. It is also under investigation in connection with an alleged bribery case involving former ICICI Bank CEO Chanda Kochhar.
Other major defaulters include companies from the Reliance Group led by Anil Ambani, with combined dues of ₹4,402 crore, along with Dunn Foods Pvt Ltd, Punj Lloyd, and Coastal Energen Pvt Ltd. The latter, now acquired by Adani Power through insolvency, had borrowed heavily from several banks, leading lenders to pursue legal recovery.
Additional large defaulters span sectors such as infrastructure, energy, and gems and jewellery. These include Lanco Infratech, Rolta India, S Kumars Nationwide, and Gitanjali Gems linked to Mehul Choksi and Nirav Modi. Several other firms like KS Oils, Nagarjuna Oil Corporation, and EPC Constructions have also defaulted on substantial amounts.
A number of mid-sized borrowers, including Sujana Towers, HDIL, Ushdev International, and Winsome Diamonds, have added to the bank’s stressed assets. Transtroy India is also under investigation for alleged fund diversion, with agencies probing financial irregularities linked to its operations.
Many of these loans reportedly lack strong collateral backing, with recovery largely dependent on pledged shares and personal guarantees. Banking sources suggest that some large exposures were influenced by external factors, complicating recovery efforts and contributing to the rising burden of non-performing assets.
Among the biggest defaulters is the Videocon Group, with dues of ₹25,299 crore. The group, led by Venugopal Dhoot, had availed multiple loans from the bank and is currently undergoing insolvency proceedings. It is also under investigation in connection with an alleged bribery case involving former ICICI Bank CEO Chanda Kochhar.
Other major defaulters include companies from the Reliance Group led by Anil Ambani, with combined dues of ₹4,402 crore, along with Dunn Foods Pvt Ltd, Punj Lloyd, and Coastal Energen Pvt Ltd. The latter, now acquired by Adani Power through insolvency, had borrowed heavily from several banks, leading lenders to pursue legal recovery.
Additional large defaulters span sectors such as infrastructure, energy, and gems and jewellery. These include Lanco Infratech, Rolta India, S Kumars Nationwide, and Gitanjali Gems linked to Mehul Choksi and Nirav Modi. Several other firms like KS Oils, Nagarjuna Oil Corporation, and EPC Constructions have also defaulted on substantial amounts.
A number of mid-sized borrowers, including Sujana Towers, HDIL, Ushdev International, and Winsome Diamonds, have added to the bank’s stressed assets. Transtroy India is also under investigation for alleged fund diversion, with agencies probing financial irregularities linked to its operations.
Many of these loans reportedly lack strong collateral backing, with recovery largely dependent on pledged shares and personal guarantees. Banking sources suggest that some large exposures were influenced by external factors, complicating recovery efforts and contributing to the rising burden of non-performing assets.
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