New Delhi: An argument arose over SBI allegedly writing off loans worth Rs. 7,000 crore counting that of Vijaya Mallya endorsed Kingfisher Airlines, administration and the bank today maintained that there was no loan waiver and the liability on the borrowers still continues. Finance Minister Arun Jaitley asked opposition associates in the Rajya Sabha not to go by the factual meaning of write-off.
Finance Minister has also further conveyed that, there is a little bit of malapropism concerned in this. Don’t go by literal meaning write-off. Write-off does not mean loan waiver. Loan still continues. You still persist to pursue. He was superseding throughout a debate in the house on the administration’s demonetisation action.
Finance Minister Arun Jaitley was replying to CPM leader Sitaram Yechury who referred to a newspaper report which conveyed SBI wrote-off loans of wilful defaulters counting Rs. 1,200 crore of Kingfisher Airlines. However, the member did not take any names. Congress leader Anand Sharma had also lifted the matter in his speech.
The minister conveyed that: “It (write-off) does not mean that the loan ceases to be a loan. We will still chase the loan. The entry in the book changes that is from being performing assets, it become a non-performing (asset).”Without purposely referring to the Kingfisher case, the Finance Minister Arun Jaitely conveyed that, this loan was rationalized when another government was in power.
He has also further conveyed that, this is the only loan for which second restructure was wanted by that administration. So, we inherited a awful legacy. But only in the accounting book, the performing assets becomes non-performing that’s all. Otherwise the liability to pay and right to recover still continues.
SBI Chairman Arundhati Bhattacharya also required downplaying reports of loan write-off of 63 wilful defaulters conveying that they have been clubbed below a different head and efforts are on to recover loans from such defaulters. SBI, the leader of the consortium of 17 banks, has taken physical possession of many properties counting Goa’s plush Kingfisher Villa.
The auction by the bank unsuccessful to attract any bidder. “These are not benefits. They are old passages done after some time. We have completely accommodated these advances so they are put into a record called Accounts Under Collection.
There is an exceptionally powerful process for following up every one of these advances for recuperation including month to month survey by administration and quarterly audit by board, “No let off of borrowers happened and all procedures are engaged for full recuperation. The words “discount” are specialized terms and utilized as a part of the layman’s method for comprehension these words is totally deceptive,” she told.
In July, SBI had communicated failure to disclose subtle elements of credits given to Vijay Mallya and his now outdated Kingfisher Airlines in light of a RTI inquiry, holding that the matter is sub-judice and being investigated by examining offices.
According to the most recent distributed quarterly numbers, SBI had discounted credits worth Rs. 6,060 crore toward the end of September while it was Rs. 4,613 crore toward the end of the main quarter of the current budgetary year. Aggregately, the bank has discounted Rs. 10,673 crore in the primary portion of the current monetary.