SBI writes off Rs 7,016 crore loans owed by wilful defaulters, including Vijay Mallya’s defunct airlines

The clean-up saw SBI forgo almost Rs 1,201 crore in dues owed by Vijay Mallya's defunct Kingfisher Airlines, which heads the list of wilful defaulters.

By: Express Web Desk | New Delhi | Updated: November 16, 2016 2:22 pm
Vijay Mallya, Vijay Mallya Supreme Court, Vijay Mallya london, Vijay Mallya passport, Vijay Mallya absconding, Kingfisher Vijay Mallya, Vijay Mallya ED, Vijay Mallya money laundering, Vijay Mallya loan default, india news, business news Vijay Mallya (Source: File Photo)

The State Bank of India got non-performing assets worth Rs 7,016 crore off its books by writing off loans owed to it by 63 wilful defaulters, Daily News & Analysis reported Wednesday. The clean-up saw the bank forgo almost Rs 1,201 crore in dues owed by Vijay Mallya’s defunct Kingfisher Airlines, which heads the list of wilful defaulters. Documents accessed by DNA reveal that 63 accounts have been fully written off, 31 partially written off and six have been shown as NPAs. SBI adjusted its balance sheets by moving the Rs 7,016 crore to an Advance Under Collection Account (AUCA). The top wilful defaulters include KS Oil (Rs 596 crore), Surya Pharmaceuticals (Rs 526 crore), GET Power (Rs 400 crore) and SAI Info System (Rs 376 crore).

Mallya, who has been declared by ED as a proclaimed offender, has left the country after banks moved the Supreme Court to seize his assets. Kingfisher Airline owes a total of Rs 6,963 to 17 banks. In February, The Indian Express first reported that Twenty-nine state-owned banks wrote off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015. SBI topped the list by writing of bad debts worth Rs 40,084 crore in the last three financial years.  The Supreme Court, taking suo motu cognizance of The Indian Express report, called the write off “a big fraud” and ordered the RBI to share with it names of the biggest defaulters. On Tuesday, the Parliamentary consultative committee, constituted to study non-performing assets (NPAs) in the banking sector, has suggested that the government should name all the defaulters whose loans have been written off by state-owned banks.

“Members (of the committee) suggested that there is need for bringing more transparency in the system, and list of all the defaulters whose loans have been written off by the PSBs be made public. They asked for exemplary action against the wilful defaulters so that others do not indulge in similar activities,” said a statement released by the Finance Ministry.

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    Onkar Singh
    Nov 16, 2016 at 8:26 am
    This is the true Patriot of patriots,Modi.A true deshbhakt,is Modi.He has put the country in a mess and while the people are busy exchanging their notes,see how slyly he has got the SBI to write off the debts of Mallya.The same thing he had done with the Armed Forces,during the " Surgical strikes".While the country was debating on the " surgical strikes", merits and demerits, Modi's govt was busy pruning the Pension of incapacitated soldiers.What a G PM!!Modi is!!! Will the journalists take note of this sleight - in - hand tactics of Modi.He stabbed the soldiers from behind.And now he has stabbed the poor and the common peoples back from behind.A very " honourable" PM of India!! A NOBLE DARK SOUL !!!
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      Sir WHAT
      Nov 16, 2016 at 9:06 am
      Rubbish. Pls read up on provisions, Gross NPA, Net NPA, etc. Any bank's annual report or RBI's website has sufficient info on reading into what SBI has done.
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        Archie
        Nov 16, 2016 at 7:04 am
        Need we say more? Just what is our great PM going to do about this??!!
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          Vanddu.Murugan
          Nov 16, 2016 at 8:38 am
          Welcome back Vijay Mallaya. Red carpet waiting for you. Go straight to Modi's house escorted by Arun Jaitley. BJP is always indebted to you.
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          1. I
            Indian
            Nov 16, 2016 at 8:14 am
            ENJOY! but people with over 2.5 lacs are going to be investigated.
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            1. R
              Ramana
              Nov 16, 2016 at 8:17 am
              How much of the written off loan money reached BJP's party accounts in LIECHTENSTEIN Banks?lt;br/gt;lt;br/gt;DDCA fiancial terrorist Arun Jaitley knows everything and it is he who ordered the write offs.
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              1. R
                Ramana
                Nov 16, 2016 at 8:19 am
                Remember the Chairwoman of SBI was recently given extension recently.
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                1. K
                  Kds
                  Nov 16, 2016 at 9:53 am
                  Guys pls.check with finance/accounts/bank professional for the diff between write off a loan as a NPA and waiving of loan repayment before giving expert comment on this issue.It is statutory provision of the banking regulation, after a certain period of time if the defaulters don't repay the loan partly/fully, that loan(et in bank's book) will be termed as NPA.(non performing et).Against these NPA bank has to provide 100 percent provision in their books of accounts.It is a statutory duty of all banks,failing which there will be penalty.subsequently , if any part of that loan is recovered by bank at later stage, they will make necessary adjustment against that NPA.It has nothing to do with being a BJP or RSS.
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                    SubbuI
                    Nov 16, 2016 at 12:21 pm
                    SO WHAT? FOR GET THAT WRITTEN OFF MONEY.THAT IS DEAD MONEY.WITH IN ONE WEEK SBI GOT DOUBLE OF MONEY IN DEPOSITS FROM PUBPLIC.WHAT A IDEA JI - HAIL MODI
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                    1. A
                      Adarsh
                      Nov 16, 2016 at 7:54 pm
                      Nothing surprise Modi is only doing this drama of demonetisation only to support people like Mallaya and Lalit Modi. Adani, and Ambani already smiling that Modi has done great favor for them to steal again as 98 percent potion forced to put every single Rupee in the banks for their next loot.
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                        ams
                        Nov 16, 2016 at 10:32 pm
                        What is the use of declaring them wilful defaulters if you are going to write off their loans anyways!!!
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                          Ajin
                          Nov 16, 2016 at 9:34 am
                          And Now Bank's have every single penny of common man's money in the name demolition.
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                          1. A
                            Akhil
                            Nov 16, 2016 at 9:45 am
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                              akshat
                              Nov 16, 2016 at 8:41 am
                              What rubbish journalism is this.. If someone steals a tv from your house.. and u have to sell your house to another person the value of ur house would be devalued by the value of your TV. This is called write off.. The crime remains and the money owed will still be sought after. Dumbfux..
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                                AK
                                Nov 16, 2016 at 8:52 am
                                Vision:2017 revolution--gt;breakup of India--gt;establishment of linguistic states--gt;Holocaust of brahmins--gt;peace!
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                                  Anand Sudan
                                  Nov 16, 2016 at 6:24 pm
                                  Mr Editor, Your anti Modism is taking you to the level of a media which does not know the basic tenants of journalism- that stories should be based on facts and truth.You have twisted the fact and gave a misleading story.Actually this is a technical write off- Advance Under Collection Account (AUCA) bin for toxic loans."lt;br/gt; you pl study what is "Advance Under Collection Account" and know the real facts. These kind of reports will take away your credibility
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                                    Anand Sudan
                                    Nov 16, 2016 at 6:12 pm
                                    Mr. Editor,It is only a technical write off. Study the matter thoroughly and then report/ publish the story. Ask banking sources what is technical write off and clear the point then write the story. Don't think readers have no sensibility. technical write off does not free the defaulter from making the payment. Bank can take action on such defaulters. Ask more on banking professionals and correct the mistake.
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                                      anon
                                      Nov 16, 2016 at 8:09 am
                                      Investigate this NPA mess.
                                      Reply
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                                        Anu Radhakrishnan
                                        Nov 16, 2016 at 7:21 am
                                        Wonderful dear SBI. We would have praised you whartedly, in case you had done the same to the poor farmers and people who unwilling had defaulted. Infact, a mive number of people would have also been on the list instead of a handful like these and for a much lesser amount too. By the way does demonetization have anything to do with this?
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                                          A Varman
                                          Nov 16, 2016 at 8:48 am
                                          Wilful defaulter is now joyful owner of Rs.1201 crores and there is no harment yet a Common Man by RK Narayanan will face all the harment even for one day late payment. threatened to seize his property, threaten his guarantor thereby causing max hardship and embarrment and sleepless day and night. While for the Common Man needs to undergo all this, Wilful Defaulter has now become Joyful Defaulter. This is a best example of Eating the Cake and also having it on hand...Super performance by SBI .
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                                            avd
                                            Nov 16, 2016 at 9:00 am
                                            Fleeing of Vijay Malya from India when Bank loans of Rs Rs 9000 Crores on his head,, is itself Set back to Modi Govt specially Finance Ministry and other agencies who supposed to keep watch on him.No doubt he pocketed all Party leaders, Banks management otherwise he would not have fled abroad.Everyone including Congress party is going to ask same question in Public. NPAs of Banks were due to such defaulters.No excuse for it.
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