SBI refuses to fund Patanjali’s Ruchi Soya buyout on its own

Bankers were hoping that SBI, which had the maximum exposure of Rs 1,800 crore and hence would benefit the most by the adoption of the resolution plan, would take a disproportionate share and help the deal go through.

Synopsis

As much as Rs 3,700 crore of the acquisition cost was supposed to have been funded by bank loans with Patanjali infusing Rs 600 crore from its own internal accruals. Bankers are also wary of funding the home-grown consumer goods company after rating downgrades by rating agencies Care and ICRA in October.