Karnataka Bank has declared loans of more than Rs 160 crore of Reliance Home Finance and Reliance Commercial Finance as fraud.
Anil Ambani
Anil Ambani, who is in debt, has got a big setback. Private sector Karnataka Bank has declared loans of more than Rs 160 crore of Reliance Home Finance and Reliance Commercial Finance as fraud. Lenders have outstanding debt of more than 160 crores on both the companies. Karnataka Bank said in a regulatory filing that the bank has informed the Reserve Bank of India (RBI) about the fraud of Rs 21.94 crore of outstanding loans of two listed companies – Reliance Home Finance and Rs 138.41 crore of Reliance Commercial Finance.
The lender said it has been working with Reliance Home Finance since 2015 and Reliance Commercial Finance since 2014. With respect to the loan to Reliance Home Finance, 24 lenders were part of a multiple banking agreement, while in the case of Reliance Commercial Finance 22 lenders were part of the loan agreement.
Bank’s share
Karnataka Bank said it has 0.39 per cent stake in multiple banking arrangements in Reliance Home Finance and 1.98 per cent in Reliance Commercial Finance. The lender said that it has made provision up to 100 per cent against the loans given to the companies in both the cases. Karnataka Bank said, both the accounts were classified as Non-Performing Asset (NPA) and provision has been made for the same. There will be no impact on the financial position of the bank.
Authum to buy Reliance Home
Atham Investment and Infrastructure Ltd. (Authum Investment and Infrastructure) has made the biggest bid to buy Reliance Home Finance. The company has offered Rs 2,887 crore. Under the deal, Bank of Baroda-led bank group will get Rs 2,887 crore. In this, Rs 2,587 crore or 90 percent will be paid first. Whereas the company will give the remaining Rs 300 crore within a year.
Apart from this, ARES SSG along with Asset Care and Reconstruction Enterprise Ltd., Avenue Capital with ARCIL and Capri Global Capital Ltd. have placed bids for Reliance Home Finance. ARES SSG) is a global fund with over $8 billion in assets under management. Avenue Capital is also a global fund with over $9.5 billion in assets under management. On the other hand, Capri Global Capital Limited is a domestic NBFC.
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