If i would have bank account with Andhra Bank it is better to close it. Reason, blatant acceptance of one time settlement with Sterling Biotech (Willful Bank Loan defaulter and case filed with NCLT).
In a scathing article Ms Sucheta Dalal explained the following:
In fact, the NCLT bench slammed the bankers, Andhra Bank, which leads the CoC, and exposed the questionable and hasty manner in which the Bank has tried to withdraw the bankruptcy application. At the hearing on 11th March, it became clear that the CoC has not shared any details of the proposal with the NCLT or the resolution professional (RP).
Further it was stated in the article:
In effect, a bunch of mainly public sector banks (PSBs), led by Andhra Bank, were brazenly willing to settle for less than half the amount due, to allow the Sandesaras to fly back to their 40,000sq ft (square feet) mansion at Vadodara in their Rs 100 crore Gulfstream Jet and retain control of the company at a time when fugitive industrialists, from Vijay Mallya to Nirav Modi, are finding it difficult to live their lavish lifestyles with dignity or respectability abroad.
If such a scandalous deal, with a huge hair-cut, was contemplated for one of the biggest and most scandalous defaulters like Sterling Biotech, whose promoters are absconding, one can only imagine what is going on at banks with regard to loan write-offs and settlements.
The question asked by Ms Dalal in her YouTube presentation was very valid:
"For a pending housing loan of Rs.100,000 will the bank go for one time settlement of Rs.45,000".
My recommendations to depositors:
If a bank (Andhra Bank) is willing to take a hair cut then it is better close your bank account and shift your money to other Bank (with lesser Non Performing Assets).
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