Crb Owes Rs 3.56cr To Vysya Bank

Vysya Bank has turned out to be the latest victim of the CRB Capital Markets Ltd collapse, with Rs 3.56-crore outstanding against the scam-scarred group.

The bank had an exposure of over Rs 12 crore to CRB groups Jaihind Granite Industries Ltd, which was later merged with CRB Corporation, the group flagship.

The bank had provided over Rs 12 crore to the group with financial assets and a first charge on a CRB commercial complex on Cunningham Road in the city as collateral. The group was later forced by the bank to reduce the exposure gradually, but Rs 3.56 crore still remains outstanding. Though the value of the real estate asset on which we have first charge is pegged at Rs 7 crore, we may end up recovering only Rs 2 crore or so from the group under liquidation, bank chairman and managing director K R Ramamurthy said. Though we have real estate assets valued twice the outstanding, we have decided to go by the prudential accounting norms, Ramamurthy said confirming that the bank has already made provisions for around Rs 1.56 crore out of its profits earned in the year ending on March 31.

 

Various other institutions like KSFC, KSIIDC , IDBI and Canfin Homes Ltd have Rs 8.5 crore outstanding against CRB group companies. Vysya Banks exposure of Rs 3.56 crore takes the total institutional exposure to the group to over Rs 13 crore. In addition, depositors from the state seems to have sunk in another Rs 10-15 crore as reports from districts and towns have indicated.In Bangalore, a lone agent for the group is reported to have collected around Rs 6 crore as fixed deposits in three months last year.

RBI claim counters

NEW DELHI: The Reserve Bank of India (RBI) yesterday issued a notice advising investors of CRB Capital Markets Ltd (in liquidation) that they may file their claims along with proof before the official liquidator at the following address:

Shriram, Official liquidator, Delhi High Court, A-2, W-2, Curzon Road Barracks, Kasturba Gandhi Marg,New Delhi-110 001.

In Mumbai, the apex bank is receiving claims from CRB investors at the following address:

Reserve Bank of India, Department of Supervision, Central Office, Centre 1, 2nd Floor, World Trade Centre, P B No19948, Cuffe Parade,

Colaba, Mumbai-400 005.

The apex bank will forward the claims received from the investors of the CRB Capital Markets Ltd in Mumbai office to the official liquidator at New Delhi.