Sanjeev Gupta pulls funding for troubled Wyelands Bank
Sanjeev Gupta’s Wyelands Bank is set to be sold or would-up after its accounts revealed that repayments on 80 per cent of its loan book were overdue.
The move, reported by The Times, came after the Bank of England ordered Wyelands to repay £194m to its retail depositors in March.
The bank said yesterday that it had paid back all but £600,000 of the sum.
The Prudential Regulatory Authority order for deposits to be repaid was initiated after the unfolding crisis at Greensill Capital, which was a large provider of loans to Gupta’s GFG Alliance.
In March last year, Gupta lent Wyelands £75m as its board carried out a “solvent wind-down of the balance sheet”.
The bank yesterday claimed that Gupta will not be providing any further funds to finance a new strategy for Wyelands.
Wyelands made a pre-tax loss of £63m in the year ended April 2020, after booking £61.3m on loan impairments.
In a statement, Wyelands said: “Following several enquiries from independent third parties, the board has authorised chief executive officer Stephen Rose to engage with potential new investors to assess the potential to take Wyelands forward under new ownership.”