The rotor shaft of a three-phase induction motor is suspended on two bearings; one on fan-side, other on load-side. This paper presents a technique to locate defective bearing based on Stockwell Transform of stator current signals. The statistical properties of Stockwell transform of current signals are used to form feature vector. Principal Component Analysis is used to extract components with high variability from this feature vector. The top principal components thus extracted, are utilized to locate the defective bearing with the help of Support Vector Machine. The proposed algorithm has been tested successfully for the bearing faults such as ball and outerrace fault. © 2018 IEEE.