Punjab & Sind Bank files INR 27,955 crore recovery suits against large defaulters
Punjab & Sind Bank has the lowest share of defaults among 11 PSU banks that together have a default of more than INR 29 lakh crore from large defaulters.
Data from TransUnion CIBIL shows that, as of January 2026, the bank has filed 1,316 recovery suits involving dues of INR 27,955 crore from large defaulters. In contrast, Indian Bank has not shared its large defaulters’ list with rating agencies for the past one year. All other PSU banks are complying with Reserve Bank of India (RBI) norms by updating their data on a monthly basis with TransUnion CIBIL and other approved rating agencies.
Among Punjab & Sind Bank’s defaulters, Koutons Retail India tops the list with dues of INR 3,401 crore. The Delhi-based textile company, once a well-known brand, has largely collapsed. Bankers said the firm began incurring heavy losses in 2012, with recovery proceedings initiated about 12 years ago.
Thane-based Karanja Terminal and Logistics is the second-largest defaulter with INR 1,337 crore outstanding, followed by Orissa Manganese and Minerals with dues of INR 1,287 crore.
Jai Prakash Associates ranks fourth, owing INR 1,130 crore. The Noida-based real estate firm is facing insolvency proceedings and multiple homebuyer complaints. Recently, Adani Group won the bid to acquire the company for INR 14,000 crore, a move that has been challenged by Vedanta Group before the National Company Law Appellate Tribunal (NCLAT).
Other major defaulters include Mumbai-based Patil Construction with dues of INR 919 crore and Lanco Group, promoted by former Congress MP L. Rajagopal, which owes INR 749 crore. A staff member, Gurbir Singh, has been listed as a personal guarantor for Lanco Group’s loans.
Several other companies account for significant dues, including Chhapra Hajipur Expressways Limited of the Madhucon Group (INR 717 crore), Simhapuri Energy (INR 644 crore), Ludhiana-based SEL Manufacturing (INR 644 crore), Kolkata-based Concast Steel & Power (INR 633 crore) and Himachal Pradesh-based Indian Technomac Co Ltd (INR 623 crore).
Notable defaulters also include Pioneer Gas Power (INR 379 crore), Eskay Knit (INR 373 crore), Supertech Township (INR 357 crore), ATAM Industrial Products (INR 348 crore), Athena Chhattisgarh Power (INR 328 crore) and Aman Hospitality (INR 21 crore).
Interestingly, some high-profile defaulters of PSU banks have relatively limited exposure to Punjab & Sind Bank. Reliance Naval, linked to Anil Ambani, owes INR 178 crore, while Gitanjali Gems, associated with Mehul Choksi and Nirav Modi, availed five loans totalling INR 125 crore. Era Group, led by Hem Singh Bharana, owes INR 123 crore to the bank, despite having borrowed much larger amounts from other lenders.The bank has also filed a recovery suit for INR 103 crore against Vijay Mallya’s Kingfisher Airlines.
