SBI advises 100 Snapdeal sellers to reduce loans
The State Bank of India has sent advisories to nearly 100 sellers, coming under online marketplace Snapdeal's capital-assist programme, to reduce their outstanding loans above their drawing power.
The advisory comes following a letter written by All India Online Vendor Association to Union Commerce Minister Nirmala Sitharaman, raising fears that Snapdeal may default on payments to the sellers. The letter estimated that Snapdeal holds Rs 300-400 crore in the form of outstanding dues and goods in transit or refunds. It has struggled to deal with slowing growth, mounting losses, falling market share, and an exodus of senior executives.