SBI seeks to sell other banks’ exposures in Bombay Rayon

SBI seeks to sell other banks’ exposures in Bombay Rayon

SBI the lead banker in a lenders’ consortium to Bombay Rayon Fashions Ltd, plans to sell loans of Bank of India (BoI), Allahabad Bank and Karnataka Bank to an asset reconstruction company (ARC). The consortium has decided that the loans would be consolidated across lenders before selling it to an ARC. While SBI is selling its exposure in Bombay Rayon worth Rs 2260 crore to JM Financial ARC, other banks could also sell it to JMF ARC as one consolidated loan. BoI has loans outstanding of Rs 127 crore to Bombay Rayon, while Allahabad Bank and Karnataka Bank have exposures of Rs 108 crore and Rs 13 crore, respectively. Bombay Rayon posted net loss of Rs 282 crore on revenue of Rs 3,088 crore in the last financial year. 

Read More at Livemint News date : 28 Aug 2018, Tuesday

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