Getting away easy? Twitterati can’t stomach Vijay Mallya’s Rs 1,200 cr loan write-off

But the loan has been written-off and not waived-off.

By: Trends Desk | Published:November 16, 2016 4:56 pm
People are calling out on the government against demonetisation after SBI's latest move People are calling out on the government against demonetisation after SBI’s latest move

The latest development on the Vijay Mallya money laundering case is that the State Bank of India has written off Rs 1,201 crore he owed to the bank and moved it to the Advance Under Collection Account (AUCA) to clear its balance sheet. Mallya, who has been declared by ED as a proclaimed offender, owed a total of Rs 6,963 to 17 banks. Mallya isn’t the only one, SBI has written off Rs 7,016 crore of its books by forgoing loans 63 defaulters owed to it including KS Oil (Rs 596 crore), Surya Pharmaceuticals (Rs 526 crore), GET Power (Rs 400 crore) and SAI Info System (Rs 376 crore).

The news hasn’t gone down well with many on Twitter, especially after PM Narendra Modi’s demonetisation, with people struggling to withdraw their own money from banks. “EXPLOSIVE! While we queue up for 2000 rupees, SBI has written off 48000cr bad loans including 1201cr of Vijay Mallya!” wrote a user. “33 people have died & millions suffer in long lines as Vijay Mallya gets a 1200 cr SBI loan write-off from Modiji!” wrote another.

But in case you don’t know, the loan has been written-off and not waived-off, which does not mean that the Mallya’s Kingfisher Airlines and other 62 companies have gotten away with the money. Moving the loan to AUCA is a Reserve Bank of India-approved technique to improve the non-performing assets ratio and clean the bank’s balance sheet. Reportedly, the recovery will continue.

However, here’s what Twitterati’s saying.

However, there were some who probably understood what exactly happened.

Have something to add to the story? Tell us in the comments below.

For all the latest Trending News, download Indian Express App

  1. D
    D P
    Nov 16, 2016 at 1:19 pm
    Well when there is no further expectancy of recovery, prudential write off is done. it is a requirement per Basel norms. The bank continues it's recovery steps vigilantly. No ground for brouhaha by Anand Sharma, or for that matter, by any other politicians. They have supported actual write off by banks, in so many cases
    Reply
    1. A
      atul shukla
      Nov 16, 2016 at 12:57 pm
      A great distinction is being made, waiveoff is not write off.Yes indeed, eventually he is supposed to pay up.Guess poor farmers do not know how to balance books so no choice for them` pay now`or commit suicide.
      Reply
      1. A
        Amit
        Nov 17, 2016 at 3:06 am
        Write off doesn't mean waiveing off of the loan. The banks still pursue their loans and who have taken loan are still liable to pay it. It's an accounting term and not to be taken in literal sense. This is to maintain healthy balance sheet and divert resources optimally. lt;br/gt;Example. lt;br/gt;Suppose a bank has given a loan of 10000 rupees and makes a profit of 3000. And realizes 2000 has gone bad and very difficult to recover. It will take 2000 as cost of operations and write off. So for taxation purpose it will deduct 2000 from its income. So now it pays tax on 3000-2000=1000 rupees instead of 3000. Whenever the bank recovers the stressed loan it will show it as it's profit and pay tax accordingly.
        Reply
        1. D
          Dev
          Nov 16, 2016 at 9:17 pm
          To all readers please ask these opposition political parties who sanctioned these loans under whose regime it went on uninterrupted. Please understand this is a simple book building technique to carry on future business by a bank.
          Reply
          1. N
            NArayan
            Nov 16, 2016 at 12:57 pm
            morons...mallya is not let off the hook...there is a case against him. only if the case is withdrawn would mean he is let off....lt;br/gt;duh,,,,,you guys call yourself educated....
            Reply
            1. N
              NArayan
              Nov 16, 2016 at 12:57 pm
              morons...mallya is not let off the hook...there is a case against him. only if the case is withdrawn would mean he is let off....lt;br/gt;duh,,,,,you guys call yourself educated....
              Reply
              1. M
                Mithun
                Nov 16, 2016 at 1:04 pm
                Another example of Poor Journalism. This field can now be called sensationalism.!!lt;br/gt;Why try to fool readers by such headlines!! Provisioning or moving the et into a recovery category is totally different from write off !!
                Reply
                1. R
                  Rohit
                  Nov 16, 2016 at 3:05 pm
                  Indian express be little sensible and rationale on what should be headline " a twitter rumours or the sound rationale" . We can understand it can not be mistake but designed. Please don't go on the path of loosing credibility for sake of catchy headings. It doesn't look good ..seriously misleading people who donot understand or read only headings . Simply putting the fact at end can not compensate your headline damage even when you hide behind saying it by twitter. lt;br/gt;Its important you put your view not twitter's rumours.
                  Reply
                  1. Load More Comments