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ABG Shipyard loan fraud: List of banks affected by India's largest scam

ABG Shipyard loan fraud: List of banks affected by India's largest scam

A consortium of 28 banks led by the State Bank of India (SBI) and ICICI Bank have been defrauded by the Gujarat-based ship-building company's directors and promoters.

SBI and ICICI Bank have an exposure of Rs 2,925 crore and a staggering Rs 7,089 crore, respectively. SBI and ICICI Bank have an exposure of Rs 2,925 crore and a staggering Rs 7,089 crore, respectively.

The loan fraud, purportedly committed by ABG Shipyard Ltd (ABGSL), has impacted some of the major banks in India.

With an exposure of Rs 22,842 crore, a consortium of 28 banks led by the State Bank of India (SBI) and ICICI Bank, have been defrauded by the Gujarat-based ship-building company's directors and promoters. 

Also Read: ABG Shipyard Scam: Key players under CBI scanner  

According to an FIR filed by the Central Bureau of Investigation (CBI) on SBI's complaint, a forensic audit carried out by Ernst & Young disclosed that from April 2012 to June 2017, loans given to ABG Shipyard were siphoned off and were utilised to buy assets for its related parties. The company allegedly also pumped in some of these loans in its overseas subsidiary. 

ABG Shipyard loan fraud case: Major banks' exposure to the company 

SBI and ICICI Bank, otherwise known as 'too big to fail', have an exposure of Rs 2,925 crore and a staggering Rs 7,089 crore, respectively. ICICI Bank has the highest exposure, in terms of loan amount granted to ABG Shipyard. The fraud was first reported by the SBI on November 8, 2019. 

IDBI Bank is another bank that has been exposed. It gave a loan amounting to Rs 3,639 crore to the company. IDBI Bank and ICICI Bank have been the worst-hit lenders by the scam. 

Also Read: ABG Shipyard: Who said what on India's largest scam

Ahead of its IPO, Life Insurance Corporation of India (LIC) has also been rigged of Rs 136 crore.  

ICICI Bank (Rs 7,089 crore), IDBI Bank (Rs 3,639 crore), SBI (Rs 2,925 crore), Bank of Baroda (Rs 1,614 crore), and Punjab National Bank (Rs 1,244 crore) have a combined exposure of Rs 16,511 crore to ABG Shipyard. Meanwhile, other lenders have a combined exposure of Rs 6,331 crore.

Here's how much exposure each bank has to ABG Shipyard:-

Published on: Feb 16, 2022, 1:45 PM IST
Posted by: Manali, Feb 16, 2022, 1:38 PM IST