New Delhi: India’s largest bank, State Bank of India (SBI) has written-off loans of 63 defaulters amounting to Rs 7,016 crores, including that of the liquor baron Vijay Mallya’s Rs 1,201 cr.
As per a report by Daily News and Analysis, SBI has written off Rs 7,016 crore worth of loans to 63 of its top 100 wilful defaulters, however, 31 partially were written-off and the other 6 accounts have been shifted under non-performing assets (NPA).
As per reports doing the rounds, SBI has also written off Rs 48,000 crore of bad loans as of 30 June 2016.
However, the list of defaulters was topped by Vijay Mallya’s Kingfisher Airlines, amounting to Rs 1,201 crore.
The list is followed by the KS Oil with dues of Rs 596 crore and Surya Pharmaceuticals Rs 526 crore.
Further disclosing the matter, an SBI official said, the loan amount taken by Vijay Mallya has not been waived off but has been shifted to the Advance Under Collection Accounts (AUCA) along with other bad loans. He further said that the move was taken by them to write-off the bad debt off their books while keeping alive the option of pursuing its recovery.
Speaking on the matter, Union Finance Minister Arun Jaitley, while confronting an attack in parliament said, “The loans have not been waived off”.
“It only means that in accounting books, it is listed as a non-performing asset. A write off doesn’t mean forgiving loans. The loan will still be pursued,” the FM added.