J&K Bank ‘consciously’ avoided additional exposure in Gitanjali Gems

J&K Bank ‘consciously’ avoided additional exposure in Gitanjali Gems
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SRINAGAR: In respect of news appearing in some sections of media, J&K Bank official spokesperson in a statement issued here on Thursday clarified that the bank had no direct exposure to the Nirav Modi Group of companies and was not affected by any fraudulent Letters of Undertaking (LoU) issued by the Punjab National Bank.
The bank, added the spokesperson, however was having a business account of M/S Gitanjali Gems in its Fort Business Unit since 2012, wherein the bank had sanctioned a working capital loan of Rs 121 cr under a consortium arrangement of 31 banks led by ICICI Bank. J&K Bank’s share in the total loan facilities of Rs 5198 cr by the consortium was 2.33%.
In the wake of recent developments of the company with PNB, the consortium recently discussed and agreed that banks may individually decide to recall the facilities and may also freeze all the accounts except for allowing few mandatory/statutory payments.
J&K Bank has already initiated freeze on all debits in the account of Gitanjali Gems Limited and issued recall notice to the company which will be followed by legal action, the statement read.
The spokesperson of the bank categorised “any other information regarding the matter in some sections of media as factually incorrect”.
The bank had during its clean up and consolidation drive year and a half ago reckoned the account as a stressed account and consciously avoided additional exposure in the company, it added.