INSUBCONTINENT EXCLUSIVE:
lender, and its subsidiary, SBI Capital Markets.
SBI Capital is a leading player in syndication of big-ticket loans for corporate India and
rejigging of debt amid rising stress
could lead to hiving off the cash-spinning loan syndication division of SBI Capital Markets, offering a slice of equity in the entity to
owes its origin to advances sanctioned on the basis of advice from SBI Capital Markets.
SBI officials, however, strongly refute the
allegation, saying that no bank can blame the SBI group as each lender should and does conduct respective due diligence before lending.
When
added.
He declined to share details as the board is yet to approve a resolution on the matter.
SBI is likely to merge the debt syndication
cell of SBI Caps with the relevant department in the parent bank
Besides a potential regulatory conflict, RBI has also pointed out a likely duplication of work between the main bank and the subsidiary
interest cannot be ruled out
following the bankruptcy of Kingfisher Airlines
the problem of non-performing assets (NPAs or sticky loans)
They have studied the functioning and role of rating agencies, registered valuers, large chartered accountants and management consultants
SBI Capital was the syndicator, and when SBI agreed to lend other banks too joined a consortium to bag a slice of action in a sluggish
vying for business in a competitive market where fee on a deal is 1-2%.
