Characteristics of Corporate Wilful Default

Loan default has created a major crisis in Indian banking system. As the Basel norms are on the verge of implementation, the loan default has made it hard for banks to attain their capital adequacy ratio. Most of the defaults that have occurred comes under “wilful default”. This paper aims to study financials of companies who are under wilful defaulter's category. This paper also tries to study the trends in various elements of Altman's Z score and Ohlson O score which are used to identify bankruptcy. Financials of 47 companies operating in India, which had wilful default to the extent of more than 100 crore rupees, were taken using the data obtained from CMIE Prowess IQ database. The data was analyzed using descriptive statistics and trends were obtained.