No exposure to Coffee Day: Karnataka Bank

No exposure to Coffee Day: Karnataka Bank

Karnataka Bank Logo (DH Photo)

Karnataka Bank on Tuesday said it has no exposure to Coffee Day Enterprises, though the company's global unit has an outstanding loan of Rs 152 crore.

"This is to clarify that our bank does not have any exposure to Coffee Day Enterprises Ltd, an entity listed on BSE and National Stock Exchange of India Ltd," Karnataka Bank said in a regulatory filing.

"However, Coffee Day Global, one of the unlisted group companies (erstwhile Amalgamated Bean Coffee, a customer of the bank since 1996) is enjoying credit facilities with the present outstanding of Rs 152.48 crore," it added.

The loan to the global unit constitutes 0.29 per cent of total advances of the bank.

The above facilities are fully secured by collaterals of properties besides primary securities and all the loan accounts are regular as on date, the bank said.

Indian cafe chain Coffee Day Enterprises has come under the spotlight due to the sudden disappearance of its founder V G Siddhartha since Monday evening.

"V G Siddhartha, Chairman and Managing Director of Coffee Day Enterprises are not reachable since yesterday evening. We are taking the help of concerned authorities," Coffee Day Enterprises said in a regulatory filing Tuesday.

The company is professionally managed and led by a competent leadership team, which will ensure continuity of business, the filing said.

Reports of the company's chairman going missing took a beating on the stock, pulling it down 20 per cent to settle at Rs 154.05 on BSE.