Bengaluru: Bank staff protest outside Vikram hospital for recovery of Rs 100 crore loan

Bengaluru: Vikram Hospitals witnessed a different kind of protest on Tuesday. It was not related to any medical negligence, but this time it was the officials of a public sector bank demanding recovery of a loan of Rs 100 crore.

Around 100 employees of United Bank of India assembled on Tuesday to protest in front of Vikram Hospital for non-repayment of loan. According to the bank Vikram Hospital, run by Dr Vikram and Multiple Private Equity, which is headed by former ICICI Venture Capital chief Renuka Ramnath, had availed the loan in 2009.

“My superior officials came along with me and we are protesting. We have given a lot of notices for payment and they have still not paid and have not responded. It is the bank’s right to protest,” asserted a bank official who refused to be named. The protestors, however, had to leave the venue after police stopped their efforts for a peaceful demonstration.

Police custody

A senior police officer said, “Around 20 people who were protesting in front of the hospital were taken into preventive custody and released later in the evening. They did not take any prior permission to stage a protest and moreover protests in front of hospital would disturb patients. “We had asked them to obtain permission and stage a protest near Town Hall, but they did not do so,” he added.

However, Sudhir Pai, Executive Director and Chief Executive Officer, Vikram Hospital said that they have been in dialogue with senior officials of the United Bank for over two years to check the possibility of having the loan restructured. However, not much turned out of it.

NPA

“Vikram Hospital, Bengaluru was a ‘non-performing asset’ and our new investors invested in the company on the assurance that the past debt will be restructured immediately by the bank, to support the hospital's operations and help service the debt in the future.

“However, the bank has not honoured its commitment and the matter is now sub judice. Any unceremonious act for recovery will impact the growth of the hospital and lead to loss of value for both, debt and equity holders,” he added. “They can issue a notice as per law, but this protest is totally uncalled for,” he added.