In FY20, SBI had written off Rs.746 crore NPAs of Ruchi Soya as irrecoverable. The IBC plan indicated that SBI would recover Rs.883 crore but instead SBI has made a fresh loan of Rs.1200 crore to Patanjali Ayurveda to help acquire Ruchi Soya. SBI had the highest exposure of Rs.1800 crore to Ruchi Soya. Other PSBs may have made similar write-offs.

In the case of Ruchi Soya, the share price has appreciated from Rs.3 to Rs.1400 and had SBI converted its loans into equity, it would have made a huge profit. However, even that was not done and hence the actions of SBI look absolutely inexplicable. This could be really unfair to the shareholders who stand to lose out big time due to such actions.