Banking consortium declares Rs 14,000-cr ABG Shipyard loan 'fraud' account

The ICICI Bank-led banking consortium to ABG Shipyard has declared its Rs 14,000-crore exposure to the company as a ‘fraud’ account. State Bank of India (SBI), ICICI Bank, and IDBI Bank have the lion’s share of exposure — in excess of 50 per cent.

With the account being declared ‘fraud’, banks are not expected to make additional provisioning; it has been already classified a non-performing asset. 

ABG Shipyard was among the ‘dirty dozen’ companies referred by the Reserve Bank of India (RBI) to be taken up under the Insolvency and Bankruptcy Code (IBC) in 2016.

In terms of fraud ticket size,