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SBI writes off loans to Vijay Mallya's Kingfisher
State Bank of India writes off in in Vijay Mallya’s books, around Rs. 1,200 crore in dues owned by his collapsed Kingfisher Airlines.
According to the bank authorities, Kingfisher loan, along with other bad loans has been moved to “Advance Under Collection Accounts” (AUCA). This allows them to take the bad debt off their books, while recovery option will anyway be available.
Responding to it, a former chairman of SBI said 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.
SBI along with several other lenders, have struggled to recover close to Rs. 6000 crores loaned to Kingfisher airline. In March, the liquor baron quietly flew to London, pursued by the banks over loans and investigating agencies over allegations of financial fraud.
