And the expected has happened: Amtek Auto has defaulted on its 800 cr. of bonds that were due on Sunday. They had till end of day yesterday to pay up, and they didn’t make that payment.
For a bank holding the bonds this account is technically not an NPA until 90 days is over. So they can extend and pretend and hope that Amtek manages to salvage itself. Since the banking system has exposure to more than 7,000 cr. of loans to Amtek, you can bet your next salary that they will restructure the loan in some way and […]