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Rotomac scam: Allahabad Bank's Rs 5.16-bn exposure classified as NPA

Allahabad Bank said in a filing that the accounts of Rotomac group classified as non-performing assets according to IRAC norms of RBI and the required provision has been made

IANS  |  Kolkata 

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State-run Allahabad Bank on Wednesday said it has an exposure of Rs 5.16 billion to debt-laden Rotomac group as on January end and the lender has the required provision for the same as per RBI norms.

According to a regulatory filing, the bank said it has an outstanding of Rs 430 million to Rotomac Exim Pvt Ltd as a sole banker, Rs 3.14 billion to Rotomac Global as multiple banking lending and Rs 1.59 billion to Rotomac Exports as a consortium arrangement with Bank of India as a lead banker.

These three accounts constitute Rs 5.16 billion of outstanding exposure as on January 31, 2018.

"The aforesaid accounts of Rotomac group classified as non-performing assets as per IRAC norms of RBI and the required provision has been made," it said in the filing.

The bank said the accounts of Rotomac Global and Rotomac Exports have been filed in National Company Law Tribunal (NCLT) and was admitted on September 20, 2017.

Complaints have already been lodged with the CBI, ED and Directorate of Revenue Intelligence against the group.

Recovery process is under SARFAESI by the bank for the third Rotomac Group Company, known as Rotomac Exim.


Bank of Baroda clarified on Tuesday that it had made an exposure of Rs 4.5 billion to Rotomac Global. The case was registered after Bank of Baroda filed a complaint with an investigative agency. 

Bank of Baroda also declared that the account was declared an NPA in October 2015 and 100% provision has been made towards that account. 
 

First Published: Thu, February 22 2018. 08:55 IST
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