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State Bank Of India In Advanced Stages To Resolve Rs 17,000 Crore Of Bad Loans In Power Sector
The local head office of the State Bank of India, Mumbai Circle (Wikimedia Commons)
The State Bank of India (SBI) is in advanced stages to recover bad loans worth Rs 17,000 crore from power sector companies, Livemint has reported.
As per the report, this claim was made by the bank’s Managing Director Arijit Basu on Friday (24 August). As per Basu who was speaking on the sidelines of India Banking Conclave, the SBI is in talks with other banks with regards to the potential resolution.
The report claims that there are about 66 independent gigawatts (GW) capacity power plants facing financial stress. This includes 44 coal-based power plants, nine gas-based producers and 13 hydropower projects,
If SBI is successful in its loan recovery, it is said that the banks would be provided with a resolution option alternate to the Insolvency and Bankruptcy Code overseen by National Company Law Tribunal (NCLT).
The Reserve Bank of India (RBI) has set a 27 August deadline for the resolution of cases involving defaulting power plants, failing which bankruptcy proceedings would be initiated against them.
Basu though has claimed that this 27 August deadline won’t cause a rush of cases being referred to NCLT, at least involving his bank.
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