State-owned Bank of India Ltd on Monday (October 12) said it has declared an outstanding account of ₹575.40 crore belonging to Future Enterprises Ltd as fraudulent and reported the matter to the Reserve Bank of India (RBI).
“Pursuant to the applicable provisions of SEBI (LODR) Regulations, 2015 and the Bank’s “Policy on determination and disclosure of Material events/information”, we inform that the Non-Performing Asset (NPA), as detailed below, has been declared as fraud. This information is reported to RBI today, as per regulatory requirement,” according to a stock exchange filing.
The bank disclosed that the outstanding amount in the account stood at ₹575.40 crore, against which it has already made provisions of ₹575.40 crore.
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Future Enterprises Ltd holds the group’s investments in subsidiaries and joint ventures, including in sectors like insurance, textile manufacturing, supply chain and logistics.
It was part of the 19 group companies operating in the retail, wholesale, logistics and warehousing segments which were supposed to be transferred to Reliance Retail as part of a ₹24,713-crore deal announced in August 2020.
The deal was called off by Reliance Industries Ltd in April after it failed to get lenders’ support.
Shares of Bank of India Ltd ended at ₹133.05, down by ₹1.45, or 1.08%, on the BSE.
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