Question
Bank of Baroda (BoB) has made a prudential provision of
Rs 500 crore for exposure to Go First, which has sought bankruptcy protection after the National Company Law Tribunal (NCLT) admitted its plea for voluntary insolvency.How much exposure does the bank have to the troubled airline?Solution
Bank of Baroda (BoB) has made a prudential provision of Rs 500 crore for exposure to Go First, which has sought bankruptcy protection after the National Company Law Tribunal (NCLT) admitted its plea for voluntary insolvency. Â The lender has an exposure of Rs 1,300 crore to the troubled airline. This does not include exposure that is guaranteed by the Centre under the Emergency Credit Line Guarantee Scheme.
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