ICICI Bank swings into action on Deccan Chronicle Holdings exposure

ICICI Bank,the nation's largest private sector lender has moved the Debt Recovery Tribunal, New Delhi regarding its exposure of Rs 490 crores to Deccan Chronicle Holdings Ltd which is engulfed in a liquidity crisis. According to sources close to the development, ICICI Bank has filed an application to ensure that no order are passed by the Debt Recovery Tribunal without the former being heard. Industrial Finance Corporation of India or IFCI has also initiated proceedings against Deccan Chronicle Holdings Ltd at the Debt Recovery Tribunal, and as ICICI Bank was not a party to the case, its application has been filed with a view to "protect the interests" of the bank. When contacted, an ICICI spokesperson confirmed the development. The Debts Recovery Tribunal has been constituted under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Exchange filings indicate that Deccan Chronicle Holdings Ltd has pledged 30% of its promoter stake ( valued at roughly Rs 70 crores) to ICICI Bank. Lender pressure is mounting on the media house which is also facing a separate winding up petition filed by IFCI at the AP High Court. Reports suggest banks including Axis Bank, Yes Bank, Canara Bank and Corporation Bank have a total exposure of approximately Rs 1500 crores to Deccan Chronicle.