Bank of Baroda classifies RCom, Anil Ambani as fraud

After State Bank of India and Bank of India, another lender, Bank of Baroda, has classified the loan account of insolvent Reliance Communications as fraudulent and named its former director, tycoon Anil Ambani, citing alleged misutilisation of loans granted more than a decade back, according to a regulatory filing.

RCom said it had received a letter from BoB dated September 2 conveying its decision to classify the loan account of the company and promoter Anil Ambani as “fraud”.

Bank of Baroda had sanctioned Rs 1,600 crore and another Rs 862.50 crore in line of credit to the company. Of the total Rs 2,462.50 crore, Rs 1,656.07 crore remains outstanding as on August 28, according to the lenders’ letter disclosed by RCom in the regulatory filing.

“The account was classified as non-performing asset (NPA) with effect from June 5, 2017,” the letter said.