SBI Filed A Complaint With The CBI Against ABG

SBI filed a complaint with the CBI against ABG. SBI said in the complaint to CBI – Banks made many efforts to bring back the operations of ABG.

State Bank of India (SBI), which filed a complaint with the CBI against ABG Shipyard Limited, said that several attempts were made to bring the company’s operations back on track, but without success.

In a statement issued by SBI on Sunday, it has been said that ABG Shipyard was established on March 15, 1985.

The consortium of 28 banks, led by ICICI Bank, started lending to the company in 2001 and was given a total loan of Rs 22,842 crore.

The company’s account was declared NPA for the first time in 2013.

The loan account of the company was declared NPA on 30 November 2013 due to poor performance. Since then several attempts have been made to revive the company.

The company’s account was reorganized in 2014.

“In March 2014, the accounts of the company were restructured by all the banks under the CDR system,” the statement said.

However, the company’s operations could not be brought back on track due to the slowdown in the shipping industry.

In 2016 the account was declared as NPA again from the old date.

The company’s account was further classified as NPA in July 2016 with effect from the retrospective date i.e. November 30, 2013, following the failure of the restructuring process, the statement further said.

Ernst and Young were appointed virtual auditors in April 2018 and submitted their report in January 2019.

Loan amount diverted.

Swaminathan Janakiraman, managing director, Risk Compliance and Stress Asset Resolution Group at SBI, said the virtual audit found that promoters had diverted money taken as loans, following which the account was classified as fraud.

No effect on the balance sheet of lender banks

He said that since such cases have been fully provisioned, there will be no impact on the balance sheet or profit/loss of accounts of any bank.