SBI: Want actual cash from Vijay Mallya, not ‘Ifs’ and ‘Buts’

May 03, 2016 09:55
SBI: Want actual cash from Vijay Mallya, not ‘Ifs’ and ‘Buts’

It is known that, Vijay Mallya has declared his willingness to settle with the banks, but SBI chairperson Arundhati Bhattacharya says his willingness will have to be tested.

Speaking on the same, she said, “The willingness seems to be there, we will have to test that out. I want to see actual cash... I don't want to see ifs and buts.”

She opined that, Mallya’s offer was rejected, doubting on his ability to pay the loan.

“We did not have a proper understanding of the paying capacity. Unless and until we know the assets of the person how are we to realise the paying capacity. That is what we've been asking for time and again, ultimately the highest court in the land did give it to us,” she said.

After assessing the value of the loan and his ability to pay, the banks would call for one-time settlement, she said.

"The bank takes a call as to this is the maximum amount one can get. We also try to do what is a net present value to see whether it is a fair deal."
 
Speaking about the ongoing talks with Mallya, SBI Chief further said, “The fact of the matter is we need to settle it, we do realise that. It is part of any cycle, exceptions are not being made only for one person or for big industry or small industry - it is there across the board, we do it for everybody.”

In a separate interview, Vijay Mallya denied that he owes Rs. 9000 crores to the banks. Taking out that point, SBI Chief said, “the principal amount he owes is “around Rs 5,000 crore, but that final amount keeps changing because once you take a loan, the interest meter doesn't stop ticking. The interest gets compounded ever quarter.”

Hinting that the impact would be big on Mallya issue, Arundhati said, “They know today for instance we're very serious about ensuring that money is recovered, we are serious about ensuring that if we give money the business has to be able to sustain it, and if there is a problem, they need to come to us at the first instance instead of trying to do all sort of things with which they only dig a deeper hole.”

By Phani Ch

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Vijay Mallya  SBI  India news