About 27,580 crore rupees of private and public banks are stuck in Indiabulls group running in trouble. It is in the form of debt and non-convertible debentures. Promoters of Indiabulls are facing allegations of financial irregularity. State Bank of India has the most money with 8,100 crore rupees at stake. 6,040 crore rupees are also at stake in Yes Bank, which is in crisis. If Indiabulls defaulted, the biggest risk is for Yes Bank.
Indiabulls Group comprises the main company Indiabulls Housing Finance (IHFL), its 100 per cent subsidiary Indiabulls Commercial Credit (ICCL) and Indiabulls Consumer Finance (ICFL). According to a report by McQuire Research, after State Bank, Bank of Baroda (including Vijaya Bank and Dena Bank) has engaged Rs 6,460 crore and Yes Bank has Rs 6,040 crore.
Why is there more risk for bank
A quarter of Yes Bank's net worth is stuck in Indiabulls Group. The total net worth of Yes Bank is around Rs 27,000 crore. That is, if Indiabulls defaulted, the biggest risk is for Yes Bank. After this, 10% of the net worth of Bank of Baroda has been given to Indiabulls.
IndusInd Bank has given Rs 3,080 crore to Indiabulls Group and HDFC Bank has given Rs 1,650 crore. However, both these banks have also got some part of the loan back. Apart from these, RBL Bank has given a loan of Rs 390 crore to Indiabulls, Kotak Mahindra Bank Rs 170 crore and Axis Bank has given a loan of Rs 1,690 crore. ICICI Bank remains in this case, because it has not given any loan to Indiabulls.
Crisis continues for a year
Significantly, Indiabulls, which has been in crisis for the past one year, has sold most of its office assets to private equity giant Blackstone, which will further gain full control over the group's commercial portfolio. In March, Indiabulls sold its two commercial properties in Mumbai and Gurugram to Blackstone for Rs 4,750 crore. Indiabulls also plans to merge with Laxmi Vilas Bank, but it is yet to get the green signal from the Enforcement Directorate, Income Tax Department and several other agencies.
Allegations
In a petition filed in the Delhi High Court, it has been alleged that the promoters of Indiabulls, including Chairman Sameer Gehlot, transferred funds to the group companies in their account. On September 30, Indiabulls Housing Finance saw a 34 percent drop. The stock has fallen by 70 per cent in the last one year.
