$10 Billion of India Power Debt Near Resolution, State Bank Says
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Lenders work to resolve loans under central bank’s new rules
- RBI set 180-day timeline to recast stressed loans from March 1
Delinquent loans worth as much as 700 billion rupees ($10 billion) in India’s power sector are in the process of being resolved, according to the nation’s largest bank, helping lenders avoid dragging seven accounts to bankruptcy court under new norms laid out by the regulator.
State Bank of India identified 34 stressed accounts in the power sector, with dues of about 1.8 trillion rupees, said Arijit Basu, a managing director at the lender. Of these, 14 have already been referred to insolvency court and for eight “the difficulties have been resolved,” he said. Twelve more have the potential to be recast and in seven of these cases — where State Bank has an exposure of 170 billion rupees — talks are in an advanced stage, he said…
$10 Billion of India Power Debt Near Resolution, State Bank Says
