Company, promoters don't have any outstanding term loan from YES Bank: IHFL

Karnataka Bank also rejected somenews reports that had raised doubts on the safety of some banks using an

Indiabulls Housing Finance Ltd (IHFL) on Sunday said the company as well as its promoters do not have any outstanding term loan from Yes Bank.

The company was clarifying on "some rumours" in social media in this regard.

"In relation to some rumors and misinformation in social media regarding term loans of Yes Bank to Indiabulls Housing Finance, we would like to place facts in public domain that the outstanding terms loans from Yes Bank to Indiabulls Housing Finance are Zero," an IHFL statement said.

It further said that the outstanding term loans from Yes Bank to promoter of Indiabulls Housing Finance or any of his promoter companies / family members companies are Zero.

In a separate filing, Karnataka Bank also rejected somenews reports that had raised doubts on the safety of some banks using an "absurd and flawed so called M-Cap to deposit ratio".

The bank asserted that its financial health is sound and the Capital to Risk Weighted Assets ratio, the main parameter, is well above the limit prescribed by the RBI.

IndiaBulls Housing Finance said the misinformation campaign on Indiabulls Housing Finance is being orchestrated by the blackmailing and extortion gang who we have been dealing with for past one year, few members of this gang are in jail and few are absconding.

The company said, "We are in process of taking legal action on various media platforms that the gang is abusing to spread misinformation about Indiabulls Housing Finance."

While dismissing the application of Kislay Panday, a Proclaimed Offender and the mastermind of various PILs in different courts against Indiabulls Housing Finance and the leader of blackmailing gang, the Honorable High Court order quoted in its order dated 27-2-2020: Therefore, looking into the allegations of blackmailing and extortion of money from the complainant, I do not find that from the bare perusal of the FIR it can be quashed.

Even at the stage when the petition was filed, non bailable warrants were issued against the petitioner. The anticipatory bail of the petitioner was dismissed by the trial court and thereafter the petitioner traveled abroad and never returned back.

Meanwhile, Karnataka Bank also clarified that some news reports had raised doubts on safety of some banks, including the bank, using an "absurd and flawed so called M-Cap to deposit ratio".

Later the said report was also circulated widely in social media.

The above report by India Today "tv channel infused a lot of anxiety and panicky situation among the depositors in particular and other stakeholders in general and also raised a doubt about the safety of the Bank", the filing said.

The aforesaid report by television channel is totally incorrect, mischievous and likely to mislead the public and depositors by creating shadow of doubt about safety of the Bank, it added.

The RBI, Krishnamurthy Subramanian, Chief Economic Advisor to Government of India, and SBI Chairman and other experts in the matter clarified that so called M- cap to deposits ratio is non-existent in the financial world and nowhere used in the world to measure the health of banks, it mentioned.

"In fact the solvency and strength of banks is measured globally by referring to Capital to Risk Weighted Assets ratio i e CRAR only. The CRAR of your Bank as per audited financials as on March 31,2019 was at 13.17 per cent which is well above the CRAR of 10.825 per cent prescribed by Reserve Bank of India.

"It is amply clear that your Bank is well capitalised indicating solvency of the Bank and with sound financial position measured among other parameters like Net NPA (2.95%) and Provision Coverage Ratio(PCR) (58.45%) as on March 31, 2019," the bank said.

The Bank has also taken appropriate legal action against such incorrect and misleading publications.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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