State Bank of India takes PC Jewellers to NCLT over loan account default

The State Bank of India (SBI) has taken PC Jewellers to National Company Law Tribunal (NCLT) over loan default on Wednesday. 

The matter will be heard by the Principal Bench of NCLT in the first week of August.

The bank, which filed an insolvency plea against the jewellery company in NCLT, had classified PC Jeweller’s loan account as a non-performing asset in June, 2021.

The jewellery company, in its annual report for the fiscal year 2021-22, had said that it had borrowed money from 14 banks, including SBI, Indian Bank, Union Bank and Punjab National Bank.

SBI, with Rs 1,060 crore outstanding, is the largest lender. 

The company, however, in its annual report of May 30, 2023, said that its operations had picked up substantially during the first three quarters of FY23.