SBI, other PSBs to lend Rs 4,000 cr to Patanjali for Ruchi Soya acquisition

The loan to Patanjali Ayurved comes a few weeks after CARE Ratings withdrew its rating on the firm in October

State Bank of India (SBI) and other public sector banks have decided to lend Rs 4,000 crore to Patanjali Ayurved for the acquisition of Ruchi Soya, which was facing bankruptcy proceedings under the Insolvency and Bankruptcy Code.

The money lent by banks will help the government owned banks to settle their exposure to Ruchi Soya with a haircut of 65 per cent.  Apart from SBI, Union Bank is also one of the banks lending to Patanjali.

Banks led by SBI and others had earlier made claims of over Rs 12,146 crore against Ruchi Soya after the company failed to repay