Silverline served notice under Securitisation bill

BANGALORE: Shares of Silverline took a 10.86 per cent hit to Rs 18.05 at the BSE on reports that Punjab National Bank has given a 60-day ultimatum to the company under the Securitization Bill. This makes it the first IT company to be served a notice by a bank under the recently passed act.

Under the provisions of the Bill that was passed in November 2002, banks and other financial institutions can take the help of metropolitan magistrate for seizing assets against the overdue loans of defaulters without going through costly and time-consuming legal process.

Silverline declared its quarterly financial results on January 1, 2003. It posted a net loss of Rs 6.47 crore for the quarter ended September 2002 against a net profit of Rs 13.88 crore in the corresponding quarter last fiscal. Total income of the company has decreased from Rs 50.12 crore in the September 2001 quarter to Rs 6.23 crore in the quarter ended September 2002. More than one crore shares have already changed hands at the exchanges, so far.

Source: IRIS