SBI Writes off Loans Worth Rs 7,016 Crore Owed by Wilful Defaulters
As per a report by Daily News & Analysis, India’s largest public sector bank, the State of Bank of India (SBI) has written off loans worth about Rs. 7,016 crore owed by 63 wilful defaulters.
The amount includes loans worth of Rs. 1,201 crore given to Kingfisher Airline’s Vijay Mallaya.
The SBI dropped the loan amount into the Advance Under Collection Account (AUCA) bin for toxic loans in a bid to clean up its balance sheet.
While 63 accounts have fully written off, 31 accounts have been partially dropped, and the balance sheet shows six of them under non-performing assets (NPAs).
Among the top wilful defaults are GET Power (Rs. 400 crore), SAI Info System (Rs. 376 crore), Surya Pharmaceuticals (Rs. 526 crore) apart from Malay’s Kingfisher Airlines (Rs. 596 crore), the report says.
An auction of his Kingfisher villa in Goa failed to see any taker year this year, making the loan recovery a daunting task for the banks.
Mallay’s Kingfisher airlines owes a total of Rs. 6963 crores to 17 banks.