Mumbai, Nov 14: Industrial Development Bank of India (IDBI) is holding shares of 912 companies (excluding subsidiaries, associates and companies assisted under venture capital scheme). Of these companies, the investment in 373 companies has been written down to Rs 1 per company. Further information relating to 19 companies with the investment aggregating Rs 41.2 crore is not readily available as these companies are either closed or have not furnished accounts for years.The remaining 520 companies have an investment of IDBI to the tune of aggregating Rs 1,791.4 crore.
The institution has a holding in excess of 26 per cent in only seven companies. Out of these seven companies the absolute investment in four companies is relatively low. Efforts are being made by it for the reduction of holding in one company (Tamil Nadu Newsprint and Paper Ltd) and for the remaining two companies (Surat Textiles Ltd and Ispat Profiles India Ltd), IDBI will have to wait till the disinvestments are over as the companies are not doing well presently.
Also IDBI exposure to a single company was 12.4 per cent (12.8 per cent at end March -1999) of net worth of the institution, while that of a single business group was 20.3 per cent (23.3 per cent) at the end of March 2000. The highest exposure to any single industry, iron and steel, was 14.3 per cent followed by 9.7 per cent to electricity generation and 9 per cent to cotton textiles.
As per the Reserve Bank of India's guidelines, exposure to a single business group should not exceed 50 per cent net worth.
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