Indian Bank Cut Back arrangement Letter

Kallam Textiles has clarified that Indian Bank physically handed over a letter dated July 10, 2025 (not by email as previously stated), granting permission for holding on operations in the company's account for a period of 6 months or until restructuring is implemented, whichever is earlier. Under this arrangement, the bank will recover 6.28% of the Weaving unit's sales proceeds and appropriate it to the NPA (non-performing asset) account through an escrow mechanism. Several conditions apply, including restrictions on routing transactions through other banks and a cap on both fund-based and non-fund-based exposures at current outstanding levels. The bank retains the right to withdraw the arrangement and initiate recovery proceedings if restructuring is not found viable or if no significant developments occur in bringing investors into the business.