PMC Bank crisis: HDIL says loans taken after giving 'adequate security' cover

The company has over a period of time availed itself of banking facilities from various banks and institutions including PMC Bank in the normal course of business," HDIL vice chairman and managing director Sarang Wadhawan said in a regulatory filing.He further said that "adequate security cover in favour of the banks including PMC Bank has been created" over the assets of the company for these facilities in due compliance with all banking regulations as per guidelines described by the RBI.Wadhawan said the company is facing temporary cash flow issues due to a slowdown in the real estate sector.As a result, he said, the company has been admitted under the IBC, but added that it was "actively attempting to resolve" the issue.The now-suspended managing director of the crisis-hit PMC, Joy Thomas, reportedly admitted to the RBI that the bank's actual exposure to the bankrupt HDIL is over Rs 6,500 crore- four times the regulatory cap or a whopping 73 per cent of its entire assets of Rs 8,880 crore.As per initial investigations, the bank's losses since 2008 were Rs 4,355.46 crore, police said."In relation to borrowings from PMC, we have already issued letters requesting an appointment with the administrator in charge of the bank to put forth the true and correct picture as also to discuss a strategy hereby the interest of all stakeholders and in particular PMC Bank and its depositors is protected," Wadhawan said.He said the company would take all necessary steps and extend full cooperation to any and all agencies/authorities during this period."We would endeavour to put in place plans to address interest and aspirations of all the stakeholders and extend full cooperation with the regulators and authorities during this time," Wadhawan said.He also said the company was not aware of any action against HDIL and its promoters."HDIL has been made aware of certain regulatory actions against PMC Bank and its management. It is also learnt that certain action is being initiated against HDIL and its promoters. We are unaware of any action against HDIL and its promoter," Wadhawan said. DailyhuntDisclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: The Telegraphhttp://www.tichytraingroup.com/ActivityFeed/MyProfile/tabid/57/UserId/15495/Default.aspx

http://gdempsey.com/UserProfile/tabid/57/userId/224615/Default.aspx