Loan of Rs 7,000 Crore from defaulters written of by Bank of Maharashtra

 

Logo of Bank of Maharashtra

The Bank of Maharashtra has made a major statement when they decided to "write off" loan of over Rs 7,000 Crore owned by defaulters in the last four years. The bank has said that it would recover the amount at a latter stage that it has not waived it off permanently.

Activist and Bank Share Holder Vivek Velenkar said that information regarding BoM "writing off" 7,000 Crore Rupees from defaulters has surfaced for the first time. He said " I had sought information regarding the amount written off by the bank the last four years. The bank has given me a written reply stating that Rs 7,000 Crore defaulters money has been technically written off"

Banking expert Sadashiv Khengre has said that banks resort to "written off" in a bid to show less non performing assests (NPAs) and show the balance sheet as clean as possible.

He added that the bank has only "written off" the amount for some time and not waived it off permanently. "The Bank reserves the right to recover the amount at a later stage.The Amount is not lost forever. The bank waits for the right opportunity recovered amount." 

Velenkar was not pleased by the way the bank handled the process of recovering the amount. He said since 2011 to 2020, only Rs 253 Crore has been recovered back. Some years zero amounts have been return back which shows how easy and slow the officials go on defaulters.