A lead lender to India's Future Lifestyle has dragged the fashion retailer to bankruptcy, the company told the stock exchange on Monday, adding that it was seeking legal advice on the matter.

Future Lifestyle said in a statement that State-run Bank of India has initiated legal proceedings under the country's Insolvency and Bankruptcy Code.

Part of debt-ridden Future Group, the fashion retailer, which operates clothing stores under "Central" and "Brand Factory" brands, said is was already in discussions with creditors over its debt restructuring proposal and has identified assets for sale to raise money.

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Future Group's flagship retail unit, Future Retail - once the country's second-largest retailer, is already in bankruptcy proceedings after it defaulted on loans and its lenders rejected a $3.4 billion sale of its assets to market leader Reliance Industries.