State-owned Bank of India today said it had sanctioned some loan to Rotomac group companies as a consortium lender.
State-owned Bank of India today said it had sanctioned some loan to Rotomac group companies as a consortium lender and that had turned into a non-performing asset (NPA) or bad loan in the 2015-16 fiscal for which it has already made 100 per cent provisioning.
The bank did not disclose the amount of its exposure to the Rotomac group, in response to a clarification sought by exchanges on news article ‘Rotomac owner flees country after taking Rs 800 crore loan’.
“In this regard we clarify as under that the bank has sanctioned certain credit facilities to the Rotomac group companies in the past as per laid down norms, under consortium arrangements,” it said in a regulatory filing.
The accounts were subsequently classified as NPA in the year 2015-16. The bank had made 100 per cent provisions on the amount outstanding, it said.
Bank of Baroda informed about an exposure of Rs 456.60 crore to Rotomac Global, which is under investigation by CBI and the Enforcement Directorate in connection with an alleged bank loan fraud.
The lender also said that it has taken necessary “recovery measures” and filed proceedings in the Debt Recovery Tribunal in October 2016 and a decree in favour of the bank was granted in January 2017.
BoB has also initiated action against Rotomac Global under SARFAESI Act, as per the filing issued yesterday.
Union Bank of India and Indian Overseas Bank also informed about certain lending to the group as consortium partners and that their loans had turned NPA in the past.
Both these banks said that they have initiated recovery process and have filed cases before the competent authorities.
Stock of Bank of India closed 0.35 per cent down at Rs 128.80 on BSE today.