MUMBAI — Axis Bank said the Cafe Coffee Day group, whose founder chairman VG Siddhartha was found dead on Wednesday, had repaid some of the loans after he sold his over 20 percent stake in software firm Mindtree to Larsen & Toubro recently.
Top bank officials, however, declined to specify what is the exposure that third largest private sector lender has to the account.
“We had an exposure which has gone down after Siddhartha sold his stake (in Mindtree to L&T for over Rs 3,000 crore recently)” executive director Rajiv Anand told reporters during the earnings announcement on Tuesday.
He said the residual exposure is “standard” and has sufficient securities against it.
According to CCD’s annual report, it had taken Rs 310 crore from Axis Bank as of March 2018 which had increased from Rs 92 crore a year ago.
The country’s biggest coffee chain founder VG Siddhartha was reported missing mysteriously since Monday night en route to Mangaluru, with an alleged letter by him showing he was under “tremendous pressure” from lenders and a private equity fund.
He was found dead on the banks of the Netravati river on Wednesday morning.