SBI says it hasn’t received notice from SFIO, ED on probe into loans to Usha Martin

CHENNAI: State Bank of India on Wednesday told the BSE that it has not received any notice from the Serious Fraud Investigation Office (

SFIO

) or Enforcement Directorate (ED) on any investigation into loans granted by the bank to

Usha Martin

Ltd.

A consortium of banks, led by SBI, are believed to have lent more than Rs 5,000 crore to steel conglomerate Usha Martin.

The BSE sought clarification on Monday from SBI on media reports that "Enforcement Directorate and SFIO waded into Rs 54 billion loans to Usha Martin Group."

"With reference to the email, the bank has not received any notice from either the SFIO or the ED in respect of any investigation into the loans granted by the bank to Usha Martin Ltd. The company (Usha Martin) has also confirmed of not having received any such notice either from the SFIO or the ED," said Sanjay M Abhyankhar, vice-president, compliance and company secretary, State Bank of India.

In November 2017, India Ratings downgraded Usha Martin to "IND BB++" and put its credit facilities on ratings watch. India Ratings noted that Usha Martin had a term loan of Rs 3,339 crore, fund-based limits of Rs 600 crore, non-fund based limits of Rs 150 crore and a withdrawn loan proposal for Rs 315 crore.


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