The State Bank of India (SBI) has written off loans worth about Rs 7,016 crore owed to it by 63 wilful defaulters, according to a report by Daily News & Analysis. It includes the loan amounting to Rs 1,201 crore given to Vijay Mallya's defunct Kingfisher Airlines.
SBI has moved the loan amount to an Advance Under Collection Account (AUCA) in a bid to clean-up its balance sheets.
63 Accounts in the list have been fully written off, 31 have been partially written off and 6 have been shown as non-performing assets (NPAs), the paper said quoting a document it had accessed.
Apart from Mallya's Kingfisher Airlines, KS Oil (Rs 596 crore), Surya Pharmaceuticals (Rs 526 crore), GET Power (Rs 400 crore) and SAI Info System (Rs 376 crore) are the other top defaulters.
Mallya's Kingfisher airlines owes total amount of Rs 6,963 crores to 17 banks. The auction of his Kingisher villa in Goa did not see any buyers last month.
(SOURCE-BUSINESS TODAY)
Public money is being looted from the banks with the help of corrupt people ln the system and the loops in the government policies. Farmers/ssi investors are only troubled by bank corrupt system because they are failed to protect the public money, government policies are failure to all this, Dr Amar Singh Yadav (veteran) A Nationalist
ReplyDeleteBanks exercising write-offs is a unique idea to clear bad loan impacts on balance sheets. Banks use the RBI approved tool, Advance Under Collection Accounts (AUCA), in which transfer of accounts to a specific AUCA is an NPA reduction strategy. It is resorted to after exhausting all avenues of recovery, restructuring and compromises. By writing-off bad and doubtful assets, banks can improve NPA ratios through cleansing of the balance sheet and tax benefits. All write-offs, except where one-time settlement or compromises are involved, irrespective of outstanding, should be treated as technical write-offs and parked in AUCA; recovery process of these accounts will continue till resolution of these accounts.
ReplyDeleteWe should refrain ourselves from writing misleading facts. The writer seems to be not aware of real truth. In short write off has been for interest element only after recovering principle amount.
ReplyDeletevery nice reply. it is an unwarrented post.
Delete