SBI denies reports of waiving off Vijay Mallya’s loan

Mumbai[India]: Criticizing the role of media on the report of Vijay Mallya’s loan waiver, State Bank of India’s Chair-Managing director, Arundhati Bhattacharya on Friday denied any intent of the loan being waivered for the embattled liquor baron.

“This allegation is a mischievous allegation done by the certain parts of the media to unnecessarily give us a bad name and to smudge our reputation. It is a technically accounting entry that is done in order to clean the balance sheet,” Bhattacharya told ANI here.

“In fact, by putting it under this particular account which is account under collection, there is much better control and much better review of these accounts to ensure that recovery happens at the earliest,” she added.

However, the SBI Chief reassured that recoveries would take place but it might take some time.

Earlier reports had emerged that 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.

Confronting an opposition attack in parliament, Finance Minister Arun Jaitley asserted that the loans had not been waived.

“It only means that in accounting books, it is listed as a non-performing asset. A write off doesn’t mean forgiving loans. The loan will still be pursued,” Jaitley said in the Rajya Sabha.(ANI)