SBI favors Baba Ramdev excessively, zero recovery rate and 746 crore write off

New Delhi 31st July 2020 Friday

State Bank of India Baba Ramdev was under the impression that he was overworked. Earlier, a loan of Rs 746 crore to Ruchi Soya Industries was written off and the recovery rate of the loan given to Baba Ramdev was zero, but in 2019-20, the State Bank of India repaid a loan of Rs 1,200 crore to Baba Ramdev. Was.

Earlier, under the Insolvency and Bankruptcy Code, State Bank was to recover Rs 883 crore from Baba's company Kane. Instead of recovering it, the bank gave a loan of Rs 1,200 crore to Baba's Patanjali Company. Prashant Bhushan, an ardent legislator on the issue, is said to have planned to take legal action against Baba. Posting a report on Moneylife.in website on Twitter, Prashant Bhushan wrote that despite having to write off Rs 746 crore, it was not clear on what basis SBP had given a loan of Rs 1,200 crore to Patanjali to buy interest soybeans. This money belongs to the people, so why waste it like this?

In fact, a consortium of banks has lent a total of Rs 3,200 crore to Baba Ramday's Patanjali company to capture Ruchi Soya. The highest amount of Rs 1,200 crore was given by State Bank of India, Punjab National Bank Rs 700 crore, Union Bank of India Rs 600 crore, Syndicate Bank Rs 400 crore and Allahabad Bank Rs 300 crore.

It may be recalled that the Ruchi Soya Company owed Rs 12,146 crore to the banks. The highest amount, Rs 1,800 crore, was involved by SBP alone, but SBP declared Rs 883 crore outstanding. He did not recover it and gave another Rs 1,200 crore as loan to Baba Ramdev's Patanjali Company.