SALIL 28 March 2016

Over collateral being held by bank

We are maintaing a CC a/ with SBI bank.We are having 2 Units .On the first unit we have an exposure of around 1.5 cr with the bank and the bank has a collateral which is valued at 10 cr + . We had later availved a Term Loan of around 1.5 cr on the the new 2nd unit against Plant & Machinery. The bank had also taken collateral of the Land alloted for the 2nd unit. SO it is now holding 2 collaterals.

We have repaid the Term loan on the 2nd unit and now due to certain reason wish to sell off the 2nd unit. The bank was requested to released the 2nd Collateral as they already have sufficinet collateral of 10cr + against an exposure of 1.5 cr.

However the proposal was dismissed by the bank committee citing it as a dilution of collateral.

We feel this is not justifed.

Please advise what option do we have

Thanks

Salil

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2 Replies

G.L.N. Prasad (Retired employee.) 29 March 2016

If you feel that SBI action is not justified, approach another bank, which satisfies with what ever you offers as collateral. (When it is the discretion of the Sanctioning authorities, and no one knews the conditions of sanction and symptoms/signals of your account.)