With the Swiss challenge mode of auction being put forward as a possible solution to the battle over Future Retail between Reliance Industries and Amazon, the classification of loans to the country’s second-largest retailer as non-performing assets (NPAs) is likely to have a larger dent in several banks’ books during the fourth quarter.
According to sources, Chennai-based Indian Bank is likely to have an impact of around Rs 800 crore during the current quarter due to NPAs on account of Future Retail.
Earlier, a consortium of 27 banks had indicated they would have to make combined provisions of around Rs 9,000 crore