Bank of Maharashtra to auction Videocon-backed unit's assets in Tamil Nadu

Companies News

State-owned Bank of Maharashtra has put on sale the assets of Unity Appliances Ltd, a unit backed by Videocon Industries, at SIPCOT industrial estate in Shivaganga, Tamil Nadu, for defaulting on payments.

The outstanding dues of the unit are over Rs 153 crore, plus interest, from January 5, 2018. Unity is involved in manufacturing of air conditioners and refrigerators.

Videocon and its promoter Venugopal Dhoot are guarantors to Unity Appliances, according to an auction notice placed by Pune-based Bank of Maharashtra.

The electronic auction for land and machinery is slated for March 30, 2019 with a reserve price of Rs 42.34 crore for land and Rs 72.82 crore for plant and machinery.

The Videocon group is among 40 large defaulters identified by the Reserve Bank of India (RBI) first for insolvency proceedings. The group's core businesses are consumer electronics and oil and gas exploration.

The lenders are auctioning the electronics business estimated to be worth $2 billion.


 The subsidiaries of Videocon Industries are into manufacturing, sale and distribution of consumer goods. Some of the units referred to NCLT include Value Industries, Trend Electronics, KAIL, Millennium Appliances India, Applicomp India, Sky Appliances, Techno Electronics, Century Appliances, PE Electronics, Next Retail, Evans Fraser & Co and Videocon International Electronics.

RBI removes Allahabad Bank, Corp Bank, Dhanlaxmi from PCA framework

Economy & Policy:

The Reserve Bank of India (RBI) removed three commercial banks – Allahabad, Corporation and Dhanlaxmi -- from the prompt corrective action (PCA) framework. This will allow them to carry on normal business, especially lending.

Early this month, RBI had taken out three public sector banks - Bank of India (BoI), Bank of Maharashtra (Mahabank), and Oriental Bank of Commerce (OBC) out of the framework.
Mumbai-based IDBI Bank, Central Bank of India, Dena Bank, Chennai-based Indian Overseas Bank and two Kolkata-based lenders -- United Bank of India and UCO Bank -- are still under the PCA framework.

RBI in a statement said the Board for Financial Supervision (BFS), in its meeting held on February 26, 2019 reviewed the performance of banks under PCA. BFS noted that the Government of India has infused fresh capital on February 21, 2019 into various banks including some of the banks currently under the PCA framework.

RBI removes Allahabad Bank, Corp Bank, Dhanlaxmi from PCA framework

Two state-owned banks -- Allahabad Bank and Corporation Bank -- had received Rs 6,896 crore and Rs 9,086 crore respectively as capital from the Government of India. This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with.


 These two banks have also made the necessary disclosures to the Stock Exchange that post infusion of capital, the capital adequacy ratio (CAR), Common Equity Tier 1, Net Non-Performing Assets and Leverage Ratios are no longer in breach of the PCA thresholds...Read More