Loan repayment case: Altico Capital, AU Small Finance Bank reach settlement

Non-bank financial company (NBFC) Altico Capital, which had moved the Bombay High Court last month against AU Small Finance Bank (SFB) to prevent the bank from taking any adverse step against it, has reached a settlement with the bank.

Altico, a lender focused on real estate finance, had availed of a term loan of Rs 62 crore from the bank which AU SFB recalled earlier. The bank also withheld Rs 50-crore fixed deposit (FD) that Altico held with AU SFB, following which Altico moved court.

In the settlement, Altico has agreed that the bank can appropriate amounts that fall due