Union Bank of India, whose share prices plunged 8% on Friday, said it had made 100% provision for the Totem Infrastructure Limited account. Hence, there would be no material impact on the lender.
“The said company had availed credit facilities from consortium of eight banks having aggregate exposure of ₹1,394.43 crore and within which total exposure of our bank is ₹313.84 crore as on January 31, 2018 (including unapplied interest of ₹163.64 crore),” the bank said in a statement.
The account was classified as non-performing asset (NPA) in the year 2012 and thereafter recovery action with consent of other consortium members was initiated in this account, it said. As much as 100% provision has been made for the account, it said, adding that there was no material impact of this on the bank.
CBI case
The CBI had booked the infrastructure firm for allegedly defrauding a consortium of eight banks to the tune of more than ₹1,394 crore, officials said.
Totem Infrastructure and its promoters Tottempudi Salalith and Tottempudi Kavita were named in a CBI first information report.
