The State Bank of India's (SBI) loan sanction process to a subsidiary of debt-laden pharmaceutical company Sterling Biotech has come under a cloud. Two domestic companies, Sterling Biotech and Sterling SEZ & Infrastructure Ltd, had unpaid dues of Rs 15,500 crore to a clutch of domestic banks. The guarantees helped the Sterling promoters to raise money abroad, RBI observed. As of now, Sterling Biotech owes over Rs 7,500 crore while its sister concern, Sterling SEZ, has an outstanding dues worth Rs 8,100 crore to a consortium of banks. Of the admitted claims of Rs 9,000 crore, the company is willing to repay about Rs 3,000 crore.

Source: dna June 10, 2019 23:26 UTC