From ICICI to LVB, banks may make accelerated provisioning for Karvy Group

A banking source said Karvy has not defaulted as yet and the management has given comfort to banks that the group is adequately funded and there will be no default

Several banks and NBFCs, which have high exposure to Karvy Group entities, have started discussions with their lawyers and the group’s officials on how to recover funds from the beleaguered Hyderabad-based financial services provider. Banks are also toying with the idea to make accelerated provisioning for the account — in case, events take a turn for the worse.

The discussions are centered around the collateral kept by Karvy’s companies, which have taken close to Rs 2,900 crore from several banks, including ICICI Bank, HDFC Bank, and Lakshmi Vilas Bank. 

“The talks are on with lawyers to find out the nature and depth