MUMBAI: Private sector lender Axis Bank announced on Tuesday that it was following underwriting practices and approval processes while making loans to Srei Equipment Finance Ltd and Srei Infra Finance Ltd. has forgiven. In a message to the stock exchanges, the bank announced that the outstanding commitment in the Srei group was £800 crore against the £44,000 crore of scams breaking out of Sydney claimed on its website.
“The bank has followed its underwriting practices and approval processes for any exposure related to SREI Equipment Finance Limited and SREI Infra Finance Limited. Axis Trustee Services Ltd acts in its fiduciary capacity as trustee and / or custodian and the fees it records do not reflect the commitment of Axis Bank Ltd, “he said.
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“In summary, the report is grossly inaccurate and unfounded as to the excellence of Axis Bank Limited towards SREI companies or its underwriting practices and processes.”
The [email protected] website stated Monday that Axis Bank had extended loans to Srei Group without due diligence and end-use verification of funds.
“According to the records of MCA21 (Department of Corporate Affairs website), Axis Bank, etc., has granted loans of INR 44,000 crores to SREI Infrastructure and Finance Limited without careful consideration and verification of the end use of the loan amount. That loan amount was paid out with bogus claims including related party transactions, “claimed the portal.
The Reserve Bank of India is currently conducting a special audit of Srei Infrastructure Finance and its subsidiary. Rating agency Brickwork Ratings downgraded the company’s long-term ratings from BBB to BB as the quality of assets in its equipment and infrastructure finance loan portfolios continued to suffer, profitability fell significantly and the company’s liquidity position was stretched due to the low level of collections . It has put the company’s ratings under “negative impact observation”.
For the September quarter, the company reported a 91.5% year-over-year drop in net income £4.72 crore. Lending book stood by £35,222 crore as of March 31.