Loan default: Shares of BoB, BOI among others banks fall over 6%
Loan default case of Rotomac Global, promoted by Vikram Kothari, came close on the heels of the Rs 11,515-crore Punjab National Bank fraud by billionaire jeweller Nirav Modi
Indian Bank, Syndicate Bank, Allahabad Bank, Bank of India, Union Bank and Bank of Baroda are the banks that today witnessed a fall of over 6% after two back-to-back cases of impropriety came to light in the past week.
Loan default case of Rotomac Global, promoted by Vikram Kothari, came close on the heels of the Rs 11,515-crore Punjab National Bank fraud by billionaire jeweller Nirav Modi.
The Kanpur-based company’s owner had taken a loan of more than Rs 800 crore from over five state-owned banks -- Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India.
The shares of banks tumbled as Bank of Baroda filed a complaint against Rotomac Pen promoter Vikram Kothari for a loan default of Rs 800 crore.
Also Read: PNB fraud case: Investors lose Rs 10,000 cr in 4 days; stock tanks 30%
CBI has registered an FIR against Kothari, according to media reports.
Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as "wilful defaulter". The company moved the Allahabad High Court seeking removal of its name from the list of wilful defaulter.
A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it has been wrongly declared a "wilful defaulter" by BoB despite having "offered assets worth more than Rs 300 crore to the bank since the date of default".
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