Bank of India labels Future Enterprises debt as fraudulent

what happened

State-owned Bank of India on October 12 classified Future Enterprises Ltd’s outstanding account of ₹575.40 crore as fraudulent and reported the decision to the Reserve Bank of India (RBI). CNBC TV18, citing the bank’s stock-exchange filing, said the exposure was recorded as a non-performing asset (NPA).

According to the Newsmetry API report, Kishore Biyani-promoted Future Enterprises owes the public-sector lender ₹575.40 crore. Bank of India has already made provisions for the entire amount. The bank said the classification was made under its policy governing the determination and disclosure of material events and information.

Future Enterprises holds the group’s investments in subsidiaries and joint ventures, including businesses in insurance, textile manufacturing, supply chain and logistics. It was among 19 group companies that were to be transferred to Reliance Retail under a ₹24,713-crore transaction announced in August 2020. Reliance Industries called off the deal in April after lenders failed to support it.

Bank of India shares ended at ₹133.05 on the BSE, down ₹1.45, or 1.08%.

why it matters

The classification records a fraud-related credit event for the lender, while the full provision indicates that the stated exposure has already been covered in Bank of India’s accounts.

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