Banks to sell off Binani Cement's loans to ARCs: Sources

After failed restructuring efforts, banks are in the process to sell off loans of Binani Cement to asset restructuring companies (ARCs), sources say. The company has debt to the tune of Rs 3,500 crore. Binani Cement was mainly impacted due to slowdown in the infrastructure sector. Also, the coercive actions by the Rajasthan VAT authorities in connection with the recovery of past dues last year disrupted the company’s business operations to a large extent.CNBC-TV18’s Ritu Singh, quoting sources, say that 18 member consortium, led by the Central Bank, is in talks to sell the company’s loans. Central Bank has sold Rs 350 crore of loans to Edelweiss ARC in the past. Names like IFCI, Syndicate Bank, Canara Bank and Indian Overseas Bank (IOB), which have exposure to the company, are in process to sell off loans to ARCs.
CNBC-Tv18 is awaiting response from Binani Cement and Central Bank on same.    Watch video for more.