Idbi Initiated Insolvency Proceeding Against Lanco, First Among 12 Accounts Identified by Rbi

IDBI initiated insolvency proceeding against Lanco, first among 12 accounts identified by RBI

MUMBAI: Banks led by IDBI Bank has initiated insolvency proceeding against Lanco Infratech, the first among the 12 stressed accounts that were identified by the Reserve Bank of India after they were empowered to direct banks to take action against defaulting borrowers. 
Senior bank official told ET that IDBI Bank has initiated action under Insolvency and Bankrupcy Code after they received intimation from the central bank that Lanco Infratech is among the 12 accounts 
The company has fund based exposure of Rs 7799 crore and non-fund based exposure of Rs 3349 crore as on March 2016. 

Two senior bank officials told ET that other accounts identified by RBI include Essar Steel which loans outstanding of Rs 44000 crore, Bhushan Steel (Rs 47,000 crore,) Electrosteel Steel (Rs 14,000 crore), Alok Industries (Rs 24000 crore), Jyoti Structures (Rs 5000 crore), Monnet Ispat (Rs12000 crore) and Jaypee Associates (Rs 55000 crore). 

Other accounts that are being doing rounds but could not be independently include IVRCL, Era Group, Prayagraj Power, Aban Holding, and ABG Shipyard.

The RBI’s internal committee identified 12 accounts on the criteria that they have outstanding loan of Rs 5000 crore and is classified as non-performing loan as on March 2016. These accounts constitute 25% of total NPAs.

SBI, which is lead bankers in six of accounts identified by RBI, has called meeting of lenders mid of this week to arrive as consensus among lenders on the resolution plan before initiating insolvency proceeding.

LIC bought 38.67% SBI shares in Rs15,000 crore QIP issue

Following the investment, the shareholding of Life Insurance Corporation (LIC) in State Bank of India (SBI) has increased to nearly 10.6% from 8.6%

PTI

New Delhi: State-owned Life Insurance Corporation (LIC) bought shares worth over Rs5,800 crore in State Bank of India’s (SBI) Rs15,000 crore qualified institutional placement (QIP).

The insurance behemoth bought 38.67% of shares put on the block via QIP by the country’s largest bank in early June. Following the investment, the shareholding of LIC in SBI has increased to nearly 10.6% from 8.6%. Europacific Growth Fund picked up 10.62% of the securities, as per a regulatory filing. 

Shareholding of insurance companies in SBI has increased to 11.77% after the issue as against 10.14% at the end of March quarter.

In the largest equity issuance in the country, SBI had raised Rs15,000 crore through QIP. It had issued around 52.21 crore new shares at a price of Rs287.25.