Money & Banking

Rotomac loan turned NPA in FY16; made full provision: Bank of India

PTI New Delhi | Updated on February 22, 2018 Published on February 21, 2018

State-owned Bank of India on Wednesday 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 2015-16 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 a news article.

On Tuesday, three state-owned lenders — Bank of Baroda, Union Bank of India and Indian Overseas Bank — had clarified on the same news to the exchanges and about their exposure to the firm.

Bank of Baroda informed about an exposure of ₹456.60 crore to Rotomac Global, which is under investigation by the 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. 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.

Published on February 21, 2018
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