SBI Writes Off Loans Worth Rs 76,600 Crores of 220 Defaulters: RTI
The Logical Indian Crew India
October 11th, 2019 / 8:04 PM
Image Credit: Hyderabad News
India’s largest bank, State Bank of India(SBI) has written off bad loans staggering at Rs 76,600 crore of around 220 defaulters, who owed more than Rs 100 crore each to the bank, a report by the CNBC TV18, on October 10, Thursday.
As on March 31, 2019, the bank also declared a sum of 37,700 crores of 33 borrowers as unrecoverable outstanding debt, with loans of Rs 500 crore and more, owed to it, revealed the bank’s yearly financial statement.
Following a directive of the Reserve Bank of India, the total debt of 980 borrowers with more than Rs 100 crore each had to be written off by the banks. Out of those 980 borrowers, 71 accounts had a debt of over Rs 500 crore each. In this, SBI’s share turned out to be 33- 46% of the total of 71 accounts.
Nearly 220 bad debtors out of 980 with a debt of Rs 100 crore belonged to SBI – more than one-fifth of the total number of borrowers.
An average of Rs 348 crore was waived off for each such account by SBI.
While SBI topped the list of the defaulter, another public sector bank- PNB took the second spot.
Punjab National Bank waived off loans of 94 defaulters who were supposed to pay around Rs 100 crore each. The bank also wrote off the debt of 12 defaulters who owed the bank more than Rs 500 crores.
The report showed that the public sector banks lost 1.07 lakh crores in bad and doubtful debts this financial year.
While SBI and PNB topped the list among the public sector banks, the IDBI Bank took the first spot among private banks.
Written by : Prashasti Awasthi
Edited by : Shweta Kothari