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SBI to auction Rs 2200 crore loan to Bombay Rayon

The State Bank of India has invited bids from asset reconstruction companies to offload a loan of Rs 2,200 crore given to Bombay Rayon Fashions after the apparel maker defaulted on repayments. SBI has kept a reserve price of Rs 900 crore, which is about 40% of the total loan. Banks have an exposure of nearly Rs 6,000 crore to the Mumbai-based company, which could be dragged to the bankruptcy court if a resolution plan is not in place before the end of August. As of June, lenders jointly hold 55% stake in the company, with SBI having the highest equity stake of 29%, followed by Axis Bank at 8% and the Union Bank of India at 3.3%. Other banks with marginal stakes include the Bank of India, PNB, Central Bank of India and Allahabad Bank. The promoters, Agarwal family, have a 38.3% stake in the company.

Read More at The Economic Times News date : 7 Aug 2018, Tuesday

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