Group firms working on sound footing
Vouching for sound operating practices in Tata group companies, bankers with high financial exposure to these firms said the claims on write-downs worth $18 billion were highly exaggerated.
Their defence for the group came after Cyrus Mistry, its ousted chairman, on Wednesday said acquisitions by Tata Steel in Europe and the hospitality sector and investments in Tata Teleservices and the sector power could lead to an additional write-down of $18 billion.
The books of operating companies are properly audited. These entities are working under robust management, said Aditya Puri, managing director and chief executive, HDFC Bank, at Business Standard annual banking roundtable.
“HDFC Bank is banker to many Tata group companies and claims about write-down are not ‘correct’,” said Puri. He, however, did not elaborate on amount of exposure, private lender has to Tata group.
A top executive of a large multinational bank with strong presence in India said the group had always honoured its commitments to banks. Tata group companies were under professional management and lenders had comfort in dealing with them.
The total consolidated debt of 27-listed companies of the Tata group, including Tata Steel and Tata Motors, stood at about Rs 241,000 crore (Rs 2,410 billion) at end of March 2016, according to data from Capitaline.
Photograph: PTI Photo
