New Delhi: Public sector lender Central Bank of India is grappling with massive loan defaults amounting to ₹1.44 lakh crore from large corporate borrowers, underlining the growing stress in India’s banking sector. The bank has filed 4,903 recovery cases across the country in an effort to reclaim dues from major defaulters.
According to data compiled by TransUnion CIBIL, total large-value defaults across public sector banks have crossed ₹29 lakh crore as of January 2026. In this landscape, Central Bank of India ranks seventh in terms of recovery from big-ticket defaulters, highlighting the scale of the challenge it faces.
The largest defaulter on the bank’s books is the Videocon Group, which owes ₹25,299 crore. The group had availed multiple loans in structured tranches. The case has been linked to wider allegations of financial irregularities and has figured in high-profile investigations, adding further complexity to recovery proceedings.
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Among other major defaulters are companies linked to Anil Ambani—including Reliance Communications, Reliance Naval and Engineering, and Reliance Telecom—with a combined outstanding of ₹4,402 crore. Additional large borrowers in default include Dunn Foods Pvt Ltd (₹4,191 crore), Punj Lloyd (₹4,055 crore), and Coastal Energen Pvt Ltd (₹3,630 crore).
The case of Coastal Energen stands out as it had borrowed heavily from multiple banks before undergoing insolvency proceedings. The company was later acquired by Adani Power, leaving lenders to pursue recovery through legal channels, often a prolonged and complex process.
Other significant defaulters include Lanco Infratech (₹3,543 crore), Rolta India (₹3,422 crore), S Kumars Nationwide (₹3,146 crore), and Gitanjali Gems (₹2,815 crore), promoted by fugitive businessmen Mehul Choksi and Nirav Modi.
A deeper analysis indicates that many of these loans were extended without strong recoverable collateral. In several cases, lending was backed primarily by pledged shares or personal guarantees from company directors, complicating recovery efforts. Banking experts point out that some large loans may have been sanctioned under external influence or weak risk assessment practices, which are now contributing to the mounting stress.
In a notable instance, the bank has also filed two recovery cases worth ₹663 crore against NAFED, a cooperative body under the Union Agriculture Ministry. Meanwhile, a range of mid-sized defaulters with outstanding dues between ₹600 crore and ₹1,000 crore further add to the bank’s burden.
Financial analysts warn that such large-scale defaults not only strain bank balance sheets but also pose systemic risks to the broader financial ecosystem. They emphasize the need for stricter due diligence, enhanced transparency, and stronger credit appraisal mechanisms to prevent recurrence of such cases.
The developments have once again raised critical questions around accountability in large corporate lending and the safeguards required to protect the banking system from future shocks.
