`7,016-cr loan write-off by SBI not waiver: FM

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com

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).”

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