Financial Daily from THE HINDU group of publications
Saturday, Sep 27, 2003
Financial Daily from THE HINDU group of publications Saturday, Sep 27, 2003 |
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Public Sector Banks Money & Banking - Non-Performing Assets Indian Bank set to recover big-time dues this year M. Ramesh
Chennai , Sept. 26 A NUMBER of big ticket defaulters of Indian Bank - the Gemini group, MVR Industries, Binny and the HMP group, to name a few - are likely to settle their issues with the bank this year, according to sources. The Gemini group (which has companies like Ravi Shankar Industries and Gemini Colour Labs) expects to bring on board an investor - Mr Uru Patel, an NRI - who will bring in Rs 20 crore. The money would be utilised for completing the construction of the half-done Gemini Commercial Complex in the heart of Chennai. Once the two lakh sq. ft complex is fully built, parts of it could either be sold or rented out. In either case, the proceeds will go to Indian Bank. As per a compromise reached by the group and the bank in 2000-01, the bank should get Rs 123 crore. It received Rs 10 crore soon after the compromise was reached, but the group could not pay further. Consequently, the bank proceeded to auction off the property, but could not get a buyer. The MVR group, which owes the bank about Rs 100 crore, has also come forward to settle its dues. According to Mr Kota Krishnamurthy, General Manager, Indian Bank - who looks after recoveries - the 30-ground land in Chennai (Guindy) will be put up for auction in the next three months. It is expected to fetch not less than Rs 45 crore. In the case of the Binny group, the Madras High Court recently passed an order upholding the sale of is lands to a private firm. This has raised hopes of the bank realising its dues. The bank has two accounts with the group - one for Binny Ltd and the other for Binny Lorze, a subsidiary. Between the two accounts, Indian Bank expects to get Rs 63 crore, of which Rs 14 crore will come from the sale of machines of Binny Lorze. Recoveries from Binny in the current year are expected to be about Rs 50 crore. The HMP group of Kolkata is another settlement-in-the-offing. The bank has eight loan accounts with the group, which is a BIFR case. With BIFR's permission, the bank proceeded against the borrower and has obtained permission to sell the security. The group's cement unit in Vijayawada was recently sold for Rs 11 crore. The HMP group owes the bank about Rs 100 crore, and the process of recovery has begun, bank officials said. "We are going very aggressively after the defaulters," Mr Krishnamurthy said, adding that in the current year, the bank expects to make cash recovery of not less than Rs 350 crore, compared to Rs 276 crore last year. As of now, recoveries stand at Rs 125 crore, including about Rs 85 crore through the RBI-sponsored OTS.
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