The perils of name lending: Banks count cost of loans in NMC collapse

Topics Banks | Banking

As the crisis engulfing his business empire deepened, Bavaguthu Raghuram Shetty met with Bank of Baroda officials in mid-March to discuss the $250 million he and his firms owed.

The loans were granted on the strength of Shetty's reputation as a billionaire and his businesses, in particular, NMC Health, the Middle East-focused hospital group he made his fortune from, according to court filings. Borrowing on the basis of reputation, known as "name lending", and taking on a large exposure to one person or entity is.....

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