TFCI says exposure to Cox & Kings only 4.5% of total loan book

Image result for TFCI says exposure to Cox & Kings only 4.5% of total loan bookTourism Finance Corp of India ‘s total exposure to Cox and Kings was very nominal at 4.5 percent of the total loan book or around Rs 110 crore, said BM Gupta, whole time director. The stock has been under pressure and is almost 50 percent from its 52 weeks highs following Cox and Kings’ default on debt repayments

Gupta further said TFCI has been doing business with Cox and Kings since 2011 and the tourism company has been making payments regularly. Cox and Kings’ account was standard in TFCI’s books as on date, said Gupta in an interview with CNBC-TV18.

On Wednesday, Cox and Kings shares hit a lower circuit of 4.8 percent, while TFCI shares were down 2.11 percent at Rs 85.90 per share as of 9.50 AM.

The company’s exposure to Cox & Kings is via secured debentures and loans and Cox & Kings has not pledged any shares to the company, he added.

“We have more than three times security cover and that covers not only tangible current assets of the company, they have mortgage charge on fixed assets of the company also. Then there is security by charge on the pledge of shares of an associate company having substantial intrinsic value. My debt coverage is very high and my loan is tendered in the books, and it is adequately covered,” he said.

The current gross NPA for FY19 stands at Rs 87 crore and net NPA was at Rs 37 crore, said Gupta, adding that there is no provision required because they are already carrying excess provision Rs 40 crore, while the provision requirement as per RBI is only Rs 17 crore.

“The NPA accounts which were there in the books as on March 31, those accounts have already been resolved. One account will be closing in July and another will get upgraded in September,” he said.

He further clarified that they do not have exposure to any other stressed accounts.