Wednesday, August 13, 2014

Syndicate Bank scam :Lenders' consortium on Bhushan Group to meet on August 18

BL  Au 13,14
The consortium of bankers' who have combined exposure of about $7 billion (about Rs 40,000 crore) to the Bhushan Group will meet in New Delhi on August 18.
The meeting has been called to review the status of the exposure and decide on the future course of action in the wake of recent arrest of Vice Chairman of Bhushan Steel Neeraj Singhal.
For all the lenders in the consortium, Bhushan Steel continued to be a standard asset even as there are worries that it may get downgraded in the wake of recent developments, which is seen as more a company level issue.
Top lenders like State Bank of India may at the upcoming meeting push for appointment of a managing agency to oversee the operations of the steel company, said a banker. SBI has an exposure of Rs 6,000 crore to Bhushan Steel.

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