SBI writes off Rs. 1201 crores owed by Kingfisher Airlines

Posted on November 17, 2016

The SBI on Wednesday, wrote off Rs. 1201 crores owed by Vijay Mallya’s Kingfisher Airlines and re – classified it under Advance Under Collection Accounts (AUCA) on its balance sheets. There were a total of 63 defaulters who were written off and they owe a total of Rs. 7,016 crores to SBI. The top willful defaulters include KS Oil (Rs 596 crore), Surya Pharmaceuticals (Rs 526 crore), GET Power (Rs 400 crore) and SAI Info System (Rs 376 crore). Read more on Vijay Mallya

Vijay Mallya had been declared by ED as a willful defaulter and offender. Vijay Mallya flew from India to England after he was tipped by an anonymous source that the banks in India, from whom he had taken loans, were going to move to the Supreme Court, to keep him under house arrest. Kingfisher Airline owes a total of Rs. 6,963 to seventeen banks. Twenty nine state – owned banks wrote off a total of Rs. 1.14 lakh crores of bad loans between the financial years 2013 and 2015. SBI topped the list by writing of bad debts worth Rs. 40,084 crores in the last three financial years. The Supreme Court 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, had suggested that the government should name all the defaulters whose loans had been written off by state – owned banks. “Members of the committee suggested that there is need for bringing more transparency in the system and the list of all the defaulters, whose loans had 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”, said a statement released by the Finance Ministry. Read more on Startup News