Allahabad Bank to sell Rs101 crore Khaitan Electricals debt
Kolkata: Allahabad Bank has decided to put on sale bad loans worth Rs101 crore of Khaitan Electricals Ltd (KEL), the consumer durables maker battling declining revenues in recent quarters.
An senior official of the state-owned bank told PTI that Khaitan Electricals’ NPA is one of the 61 such accounts that have been identified for sale during the December quarter. The bank has scheduled e-auction for the sale of the loan on 4 December.
“Normally, a loan is put on sale not before a year of turning NPA, but I don’t have details of Khaitan Electricals right now,” the official, involved in the process of the sale, said. When contacted, KEL company secretary A.K. Mishra said the firm was not aware of the loan sale by Allahabad Bank.
In the quarter ended September, the company posted net sales of 9.57 crore as against a topline of Rs16.41 crore in the corresponding period a year ago. As on 30 September, Khaitan Electricals had long-term borrowing of Rs101 crore and Rs246-crore short-term loans, while outstanding due to creditors was about Rs67 crore.
The company, in a release, said it also has outstanding loans with State Bank of India, IDBI Bank, Indian Bank, Bank of India and Religare Finvest Ltd. The Kolkata-based firm had attempted debt restructuring exercise last year.