Private lender IndusInd Bank has proceeded to National Company Law Tribunal (NCLT), attempting to start corporate insolvency proceedings against Zee Entertainment Enterprises Ltd, according to an exchange filing.
The lender has alleged insolvency of ₹83 crore. On Friday, Zee Entertainment shares shut at 3.08% lower at ₹278.65 apiece on NSE. However, Zee Entertainment Enterprise Ltd on Wednesday announced a consolidated net profit of Rs 298.98 crore for the third quarter of this fiscal. The company had announced a net profit of Rs 398.01 crore in the October-December period in the last fiscal.
On the other hand, IndusInd Bank on January 29 announced a huge 36.2 percent year-on-year increase in standalone profit steered by lower provisions against the year-ago period with growth in asset quality. Standalone profit for the December 2021 quarter was reported to be at Rs 1,161.3 crore, higher against the Rs 852.76 crore in the last quarter last fiscal.
Talking of insolvency, Zee is part of the debt service reserve account guarantee agreement (“DSRA Guarantee Agreement”) with IndusInd Bank for the term loan capacity advanced to Siti Networks Limited.
