ICICI, Axis Bank sell Rs 1800 crore Ballarpur loans to Edelweiss

Axis Bank and ICICI Bank sold Rs 1,800 crore of loans to paper maker Ballarpur Industries to Edelweiss Asset Reconstruction Company, according to some of the insiders. Axis Bank and ICICI Bank sold Rs 1,800 crore of loans to paper maker Ballarpur Industries to Edelweiss Asset Reconstruction Company, according to some of the insiders.It’s also the first time that without a haircut loans have been sold to an asset reconstruction firm at book value, according to the insiders.Axis Bank sold loans of Rs 1,200 crore and ICICI Bank sold loans of Rs 600 crore.Ballarpur Industries a flagship company of Avantha Group deals in the paper and pulp sector. The company will be unable to serve its Rs 600 crore loans in time.In February, India Ratings downgraded Ballarpur’s debt by assigning it a D-rating, which indicates default in servicing loans.Banks are turning cautious after a massive pileup of bad loans. Even in cases where they fear that there could be a default or a company may find it difficult to service loans, they are selling out.c) 2017 India Infoline Ltd. All rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

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