ABG Shipyard's debt conversion in bankruptcy case adhered to rules: Banks

The CBI, which examined top executives of ICICI Bank last week, is expected to call officials of some public sector banks in the coming week

Indian bank officials have informed the Central Bureau of Investigation (CBI) that they had converted a part of their loans into equity in the bankruptcy case of ABG Shipyard.

This, according to them, was done in accordance with the August 2008 corporate debt restructuring scheme circular of the Reserve Bank of India (RBI).

The CBI, which examined top executives of ICICI Bank last week, is expected to call officials of some public sector banks (PSBs) in the coming week.

This will help understand how the banks increased their exposure to the company even when ABG was defaulting on loans. ICICI Bank did not