This follows a decision by SBI, the country's largest lender, to invoke personal guarantees in all cases referred to the bankruptcy court. The guarantees will also be invoked in cases headed for the National Company Law Tribunal (NCLT) that haven't been admitted yet.Ravi and Prashant Ruia have given personal guarantees to several banks for loans to Essar Steel, while Essar Investment and Essar Steel Asia Holding have given corporate guarantees. Prashant Ruia has given his personal guarantee for loans from Bank of Baroda, HDFC, Corporation Bank and Punjab National Bank. He and Ravi Ruia have given personal guarantees for loans raised from Union Bank, IDBI Bank, Indian Overseas Bank and Lakshmi Vilas Bank.Essar Steel is among the 12 large companies referred to bankruptcy court following directions from the Reserve Bank of India in June. SBI accounts for the largest share of Rs 13,131 crore, followed by IDBI Bank at Rs 4,739 crore, Canara Bank at Rs 3,798 crore and ICICI Bank at Rs 2,481crore.

Source: Economic Times February 05, 2018 01:30 UTC