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Tamil Nadu-based City Union Bank (CUB) which has classified SpiceJet as a Special Mention Account-I (SMA), and recalled the Rs 100 crore loan given to the budget airline company, has said that Rs 15 crore has been repaid so far.
SpiceJet has provided its monthly schedule till June 2023 to CUB and has been making the repayments according to the schedule till now.
“The repayment from SpiceJet is as per their commitment agreement we entered a few months back,” said N Kamakodi, MD and CEO at City Union Bank.
The Reserve Bank of India (RBI), had earlier, provided its inspection report of City Union Bank Ltd to activist Subhash Agrawal nearly eight months after he had sought it under the Right to Information (RTI) Act.
Also Read: All points mentioned by RBI satisfactorily addressed: City Union Bank on inspection report
The report showed poor management control and sanctioning of high-risk loans from senior officials to the top executives without following RBI guidelines.
During its inspection, the RBI team said that it also observed that City Union Bank has a separate loan product for pawnbrokers.
City Union Bank has laid out its guidance in its conference call. The bank sees credit growth of 15-18 percent for the full year and expects the margin to remain around the 3.85-4 percent mark. The bank also expects asset quality to improve significantly by the end of the year as slippages come down.
The stock was up 3.02 percent in last week and 3.71 percent in the past month.
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