Dresdner Kleinwort Wasser- stein (DKW) has invoked the Rs 93 crore guarantee given by ICICI and the Industrial Finance Corporation of India (IFCI) for Birla VXL.
This comes at a time when financial institutions (FIs) in general and IFCI in particular are plagued by high levels of non-performing assets (NPA). The two institutions have decided to pay this amount and have already obtained permission from the Reserve Bank of India which has directed them to pay the sum in tranches. Around Rs 60 crore has devolved upon ICICI while Rs 33 crore will have to be paid by IFCI. The exchange risk will be borne by the two FIs.
FI sources told Business Standard:
