The insolvency resolution plan includes a Rs 417 crore financial package to pay back creditors and suppliers and includes voluntary retirement for 500 employees.
The bank maintained it would honor all bonafide commitments while said there was no communication from Reserve Bank of India on this issue.
“Importers and portfolio investors are now rushing to cover their exposures,”
Lenders such as Axis Bank, Canara Bank, IDBI Bank have either cut back on issuing LoUs or stopped them for certain categories one week after the scam unfolded.
Domestic economic growth impulses are strengthening, said RBI Governor Urjit Patel.
The importance of the sector is high given its employment potential. But a series of scandals may lead to banks slam doors unless industry restores it faith in it.
Let’s put a few things straight. It looks improbable that only a handful of junior officers were involved in the fraud given the sheer size of it and the time span.
RBI indented 771 crore pieces of coins while sources in the mints said about 650 crore coins have been produced so far this year.
Lenders are no more relying on SWIFT messages only. Whenever an overseas branch receives an LoU, it is now contacting the Indian bank directly.
The Ministry of Railways has recommended for closure and has created a corpus of Rs 417 crore so that the wagon maker can pay the dues to creditors, suppliers and employees.
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