 "Indian Bank, Union Bank classifies State Trading Corporation account as NPA")
Indian Bank and Union Bank of India have rendered the accounts of State Trading Corporation (STC) as non-performing asset because of non-payment of interest on loans.
"Due to non-payment of interest of Rs 192.9 crore on bank borrowings, Indian Bank and Union Bank of India have reported STC accounts as NPA on March 1, 2018," STC said in a filing to the BSE.
As a result, these banks may not sanction further loan to STC, it added.
Shares of the company had closed at Rs 140.40 apiece on Friday, down 1.61 per cent from its previous close on the BSE.
For the quarter ended December 2017, the company's net profit stood at Rs 19.08 crore, while revenue was at Rs 2,236.82 crore.
"Due to non-payment of interest of Rs 192.9 crore on bank borrowings, Indian Bank and Union Bank of India have reported STC accounts as NPA on March 1, 2018," STC said in a filing to the BSE.
As a result, these banks may not sanction further loan to STC, it added.
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"STC is in the process of restructuring of existing debts and necessary action has already been initiated in this regard," it said.
Shares of the company had closed at Rs 140.40 apiece on Friday, down 1.61 per cent from its previous close on the BSE.
For the quarter ended December 2017, the company's net profit stood at Rs 19.08 crore, while revenue was at Rs 2,236.82 crore.