`7,016-cr loan write-off by SBI not waiver: FM
An accounting exercise by State Bank of India to move Rs7,016 crore worth of bad loans, which had been fully provided for, off its books, raised a storm on the first day of the winter session of Parliament.
The fact that the loans written off also included 1,200 crore in dues from disgraced industrialist Vijay Mallya was enough to create an uproar.
The Opposition retracted after finance minister Arun Jaitley clarified that the bank’s move was a standard accounting measure and the recovery of the loans was still on.
“So there is a little bit of malapropism involved in this. Don’t go by literal meaning of writeoff. Write-off does not mean loan waiver. Loans still remain. You still continue to pursue,” he said.
“It does not mean that the loan ceases to be a loan. We will chase the loan. The entry in the book changes that is from being performing assets, it become a non-performing (asset).”