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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  1. O
    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 !!!
    Reply
    1. S
      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.
      Reply
      1. A
        Archie
        Nov 16, 2016 at 7:04 am
        Need we say more? Just what is our great PM going to do about this??!!
        Reply
        1. V
          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.
          Reply
          1. I
            Indian
            Nov 16, 2016 at 8:14 am
            ENJOY! but people with over 2.5 lacs are going to be investigated.
            Reply
            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.
              Reply
              1. R
                Ramana
                Nov 16, 2016 at 8:19 am
                Remember the Chairwoman of SBI was recently given extension recently.
                Reply
                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.
                  Reply
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