Public sector lender Allahabad Bank has a total of Rs 516.79 crore exposure to three Rotomac group companies and the it has made provisions against these non-performing asset (NPA) accounts.
Public sector lender Allahabad Bank has a total of Rs 516.79 crore exposure to three Rotomac group companies and the it has made provisions against these non-performing asset (NPA) accounts. The bank said it is having exposure to the Kanpur-based company, promoted by Vikram Kothari, since 2006. In a BSE filing on Wednesday, responding to a clarification sought by the exchange, Allahabad Bank said as on January 31, 2018, there was an outstanding of Rs 43.09 crore against Rotomac Exim Pvt Ltd as a sole banker, Rs 314.56 crore against Rotomac Global Pvt Ltd as multiple banking lending and Rs 159.14 crore against Rotomac Exports Pvt Ltd as a consortium arrangement with Bank of India as a lead banker. “The aforesaid accounts of Rotomac group classified as non-performing assets as per IRAC norms of RBI and the required provision has been made,” the bank said.
The lender said the accounts of Rotomac Global and Rotomac Exports had been referred to the National Company Law Tribunal (NCLT) for initiating insolvency proceedings, and the cases were admitted on September 20, 2017. “The recovery process under SARFAESI is in process by the bank for the third Rotomac group company, namely, Rotomac Exim,” the filing added. Apart from Allahabad Bank, Bank of Baroda (BoB), Bank of India, Indian Overseas Bank and Union Bank of India, among others, have exposures to the group.
In a BSE filing on Tuesday, BoB said it has exposure of Rs 456.60 crore to Rotomac Global, an arm of the Rotomac Group, under the consortium arrangement with six other banks. The account was declared an NPA in October 2015. The lender referred the account to NCLT, Allahabad, in June, 2017, and the corporate insolvency resolution process is underway.