Financial Daily from THE HINDU group of publications
Thursday, Mar 25, 2004
Financial Daily from THE HINDU group of publications Thursday, Mar 25, 2004 |
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Money & Banking
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Non-Performing Assets Federal Bank takes possession of pledged property in Chennai Our Bureau
Chennai , March 24 FEDERAL Bank has taken possession of a pledged property in the city from a borrower who did not repay the bank's loan. Ramco Super Leathers had borrowed the equivalent of Rs 12.75 crore in 1999 and another Rs 3.17 crore in 2002. The company had pledged its building in Chennai as security for the loan. But since the company was unable to repay the loan, the bank moved against the borrower under the Securitisation Act and took formal possession of the building on Wednesday. The Federal Bank's Deputy General Manager, Mr Abraham Thariyan, told Business Line today that the building is now worth about Rs 17 crore. However, the bank cannot sell or lease the building until the Supreme Court allows banks to sell or lease the properties the banks have taken possession of. Therefore, the bank is examining the possibility of having the rents received from the tenants (Johnson & Johnson Ltd) to be credited to the bank, Mr Thariyan said.
More Stories on : Non-Performing Assets | Private Banks | Real Estate & Construction | Leather | Tamil Nadu
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