IDBI Bank’s stock is trading about 3 per cent up after its clarification that its exposure to Sanghavi Exports International Pvt. Ltd. is only Rs 16.72 crore (principal outstanding).
Some unconfirmed reports on Monday evening said the LIC-owned bank had an exposure of Rs 6,710 crore to the group.
Referring to a news article, which stated that a default of Rs. 6,710 crore has been made by a Diamantaire group to IDBI Bank, the lender, in an exchange filing, said: “The Bank hereby advises that the news item contains certain factual inaccuracies.
“IDBI Bank has exposure to M/s Sanghavi Exports International Pvt. Ltd. (which is NPA), but the current Principal Outstanding is only Rs. 16.72 crore and the account is fully provided.”
The bank further said it has initiated requisite actions to recover its outstanding dues.
The bank’s shares were trading at Rs 46.95 apiece at 10.40 AM.