SBI Writes Off Loans Worth Rs 7,016 Cr; Mallya Among Defaulters

Vijay Mallya. (Photo: The Quint)

The State Bank of India (SBI) wrote off loans worth Rs 7,016 crore, according to an exclusive report by Daily News & Analysis. These loans were owed to the bank by 63 defaulters, including names like Vijay Mallya. Another 31 defaulters’ accounts have been partially written off, while six have been shown as NPAs (Non Performing Asset).

According to the report, the money has been ‘dropped’ into a “specially-created dustbin for ‘toxic loans’ called Advance Under Collection Account (AUCA)”.

This move has resulted in Rs 1,201 crore, that Mallya’s Kingfisher Airlines owed to the bank as outstanding dues, being written off the bank’s records.

Other names that are part of the willful defaulters’ list include KS Oil (Rs 596 crore), Surya Pharmaceuticals (Rs 526 crore), GET Power (Rs 400 crore) and SAI Info System (Rs 376 crore).

Additionally, on Tuesday, a Parliamentary consultative committee suggested that the government should make a note of all 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 willful defaulters so that others do not indulge in similar activities.

Finance Ministry Statement

(With inputs from The Indian Express and DNA.)