Axis Bank clarifies on exposure to Future Group entities

Axis Bank said it has an exposure of Rs 648 crore to Future Group entities as on 30 June 2021.

The bank has an exposure of Rs 305 crore to Future Retail, Rs 164 crore to Future Enterprises and Rs 179 crore to other Future group entities as on 30 June 2021.

Other Future Group entities comprises the aggregate of exposures to Future Lifestyle Fashions, Iskrupa Mall Management Company, Shree Balaji Ethnicity Retail, Nufuture Digital (India), Rachika Trading, Galaxy Cloud Kitchens, Galaxy Entertainment Corporation and Indus Tree Producer Transform.

The information was made public in clarification to certain messages on social media wherein it was mentioned that an Axis Bank led consortium has an exposure of Rs 16,000 crore to the Future Group. The bank had also received queries seeking more information on its exposures to the Future group.

Trouble for lenders of Future Group companies resurrected after the Supreme Court on Friday (6 August 2021) reportedly rules in favour of Amazon in its long-running dispute with Kishore Biyani-led group on its merger deal with Reliance Industries.

As per media reports, the Future Group has been piling on more debt to keep operations running in the aftermath of the COVID-19 led lockdowns. The reports further added that the these outstanding dues could now become unsustainable and only an out-of-court settlement can save the retail chain and its hundreds of employees.

Following the apex court judgment, Future Retail said that it intends to pursue all available avenues to conclude the deal to protect the interests of its stakeholders and workforce.

Axis Bank is a private sector bank offers the entire spectrum of financial services to customer segments covering large and mid-corporates, MSME, agriculture and retail businesses. As on 30 June 2021, the bank had a network of 4,528 domestic branches and extension counters situated in 2,559 centres.

The private sector bank reported a 94.2% jump in standalone net profit to Rs 2,160 crore on a 2.4% rise in total income to Rs 19,591 crore in Q1 FY22 over Q1 FY21.

The scrip rose 0.57% to currently trade at Rs 745.65 on the BSE.

Powered by Capital Market - Live News