Loan default: Shares of BoB, BOI among others banks fall over 6%

Loan default case of Rotomac Global, promoted by Vikram Kothari, came close on the heels of the Rs 11,515-crore Punjab National Bank fraud by billionaire jeweller Nirav Modi

The shares of banks tumbled as Bank of Baroda filed a complaint against Rotomac Pen promoter Vikram Kothari for a loan default of Rs 800 crore. Image source: PTI

Indian Bank, Syndicate Bank, Allahabad Bank, Bank of India, Union Bank and Bank of Baroda are the banks that today witnessed a fall of over 6% after two back-to-back cases of impropriety came to light in the past week.

Loan default case of Rotomac Global, promoted by Vikram Kothari, came close on the heels of the Rs 11,515-crore Punjab National Bank fraud by billionaire jeweller Nirav Modi.

The Kanpur-based company’s owner had taken a loan of more than Rs 800 crore from over five state-owned banks -- Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India.

The shares of banks tumbled as Bank of Baroda filed a complaint against Rotomac Pen promoter Vikram Kothari for a loan default of Rs 800 crore.

Also Read: PNB fraud case: Investors lose Rs 10,000 cr in 4 days; stock tanks 30%

CBI has registered an FIR against Kothari, according to media reports.

Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as "wilful defaulter". The company moved the Allahabad High Court seeking removal of its name from the list of wilful defaulter.

A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it has been wrongly declared a "wilful defaulter" by BoB despite having "offered assets worth more than Rs 300 crore to the bank since the date of default".

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