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Sunday, April 21, 2013

Andhra Bank to auction Deccan Chronicle properties worth Rs 200 cr

Andhra Bank is set to auction properties worth Rs 200 crore of Deccan Chronicle Holdings Ltd (DCHL) to recover loans.

“We have started the process under the Sarfesi Act and identified some properties in Bangalore and Chennai,’’ B. A. Prabhakar, Chairman and Managing Director, Andhra Bank told Business Line here on Saturday.

Andhra Bank has an exposure of Rs 200 crore to the beleaguered company. “These are fully securitised loans. According to valuations, the indemnified assets should give our money back,’’ the CMD said, adding that the auction process would be completely transparent.

The outcome of proceedings in the ongoing case in the Debt Recovery Tribunal is also awaited. “If there is any shortfall in recovery of assets through auction of properties, the DRT route will be helpful,’’ Prabhakar said.

Andhra Bank is one of the lenders of the company along with ICICI Bank, Canara Bank, Axis Bank, IDBI Bank, Corporation Bank, YES Bank and IDFC Ltd, among others.

DCHL has about Rs 4,000 crore loans which are collateralised. Its script closed at Rs 3.48 after gaining 9.78 per cent on the Bombay Stock Exchange on Thursday.

Source: thehindubusinessline


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