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NEW DELHI: Around Rs. 1,200 crore in dues owed by Vijay Mallya's collapsed Kingfisher Airlines has been labelled a write-off in the books of India's largest bank, the State Bank of India.
The bank said the Kingfisher loan has been moved, along with other bad loans, to a category called AUCA or "Advance Under Collection Accounts". This, the bank says, allows them to take the bad debt off their books, while keeping alive the option of pursuing its recovery.
A former chairman of SBI, however, told NDTV that the parking loans in the AUCA category is a sign that the bank has more or less given up hope of recovering the Kingfisher money.
All the lenders to Kingfisher including the SBI have struggled to recover close to Rs. 6,000 crores loaned to the defunct airline, a task made all the more complicated by the absence of Mr Mallya. The liquor baron quietly flew to London in March, pursued by banks over loans and investigating agencies over allegations of financial fraud.
Amongst the assets pledged as collateral include Mr Mallya's luxurious Kingfisher villa in Goa, which SBI has yet to find a buyer for.
News of the Mallya loan write-off broke as parliament today debated the stress caused to the public by the sudden ban on Rs. 500 and Rs. 1,000 notes last week.
The opposition has targeted the government saying big fish have been allowed to get away with crores in unpaid dues while the common man has been forced to suffer a massive cash crunch after the currency ban.
http://www.ndtv.com/india-news/stat...off-loans-to-vijay-mallyas-kingfisher-1626137
The bank said the Kingfisher loan has been moved, along with other bad loans, to a category called AUCA or "Advance Under Collection Accounts". This, the bank says, allows them to take the bad debt off their books, while keeping alive the option of pursuing its recovery.
A former chairman of SBI, however, told NDTV that the parking loans in the AUCA category is a sign that the bank has more or less given up hope of recovering the Kingfisher money.
All the lenders to Kingfisher including the SBI have struggled to recover close to Rs. 6,000 crores loaned to the defunct airline, a task made all the more complicated by the absence of Mr Mallya. The liquor baron quietly flew to London in March, pursued by banks over loans and investigating agencies over allegations of financial fraud.
Amongst the assets pledged as collateral include Mr Mallya's luxurious Kingfisher villa in Goa, which SBI has yet to find a buyer for.
News of the Mallya loan write-off broke as parliament today debated the stress caused to the public by the sudden ban on Rs. 500 and Rs. 1,000 notes last week.
The opposition has targeted the government saying big fish have been allowed to get away with crores in unpaid dues while the common man has been forced to suffer a massive cash crunch after the currency ban.
http://www.ndtv.com/india-news/stat...off-loans-to-vijay-mallyas-kingfisher-1626137
