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Andhra Bank says fund-based exposure to Sterling Group at Rs 578 cr

Press Trust of India  |  New Delhi 

State-owned today said it had classified companies as non-performing in March 2015 and reported the matter to the RBI, and subsequently a case has also been lodged with the CBI.

The said it was the lead of the consortium in case of two group companies of and the exposure to these companies is Rs 578.57 core (fund based) and Rs 568.35 crore (non-fund based) as on date and not as Rs 5,000 crore appeared in

The bank was responding to a clarification sought by stock exchanges in a article about loans to

On report that the has filed charges against a bank executive, the bank clarified that "Anup Prakash Garg was the nominated by the government under Banking Acquisition and Transfer of Undertaking Act and held office from October 13, 2006 to October 12, 2009".

"He was neither an employee nor a in the bank at any point of time," it said in a regulatory filing.

Meanwhile, in a separate filing, Bangalore-headquartered said was declared a wilful defaulter on October 6, 2017.

On the chronological order with relation to loan to Abhijeet Group, said it had extended working capital limits under consortium to Abhijeet Projects on June 13, 2011 and renewed it on December 4, 2012.

"The account became NPA on September 30, 2013. Fraud in the account reported to RBI on July 13, 2015 and criminal case was filed on August 21, 2015 before CBI. Recovery suit was filed before DRT, Bengaluru on September 14, 2015," it said in a BSE filing.

Further, the has sought details on February 26, 2018 about transactions details and the same has been furnished on February 27, 2018.

said its exposure to the Sterling group companies was classified as non-performing assets since March 2015 onwards based on the conduct of the account.

"As on December 31, 2017, out fund based exposure to the group companies is to the tune of Rs 515.19 crore and stands classified as non-performing asset," it said.

The lender said that during December 2017, it reported the group accounts as fraud to Reserve Bank amounting to Rs 515.19 corre alleging diversion of funds and money laundering on the part of the companies.

"We have already lodged formal complaint with CBI against the companies," the bank said.

shares closed 6.88 per cent down at Rs 35.85 apiece on BSE while was up 1.42 per cent at Rs 238.55.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 21:10 IST