BackUnited Spirits director Renu Sud Karnad resigns
Her presence on board of lender HDFC Bank 'does not allow the bank to conduct business' with USL, said the company in a filing to the BSE
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Bangalore: United Spirits Ltd (USL) said one of its directors Renu Sud Karnad resigned from the company’s board because of a conflict of interest with Karnad’s presence on the board of a lender to the UB Group, the promoter of USL. Karnad’s presence on the board of HDFC Bank Ltd “does not allow the bank to conduct business" with USL in a “meaningful way," USL said in a filing with the BSE.
Karnad is the managing director of financial services conglomerate Housing Development Finance Corp. Ltd (HDFC), the promoter of HDFC Bank.
Both HDFC and HDFC Bank are lenders to United Breweries (Holdings) Ltd (UBHL), the debt-laden holding company of Vijay Mallya’s UB Group. USL did not immediately reply to an e-mail seeking comment. HDFC was not immediately available for comment.
HDFC has given loans worth at least Rs916.2 crore to UBHL, according to UBHL’s latest annual report. This loan is secured by shares in USL and Kingfisher Airlines Ltd as well as UBHL’s UB City property and land in Bangalore, according to the annual report.
A working capital loan taken by UBHL from HDFC Bank is secured by pledge of 662,103 shares in USL, 4,753,881 shares in Mangalore Chemicals and Fertilizers Ltd as well as fixed assets worth Rs37 crore, the annual report showed.
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