The CDR cell has seen over 50 percent jump in loans referred in the first quarter. The latest one being Educomp, which was referred to the CDR cell this month, reports CNBC-TV18’s Gopika Gopakumar.
Around Rs 47,359 crore of loans were referred to the corporate debt restructuring (CDR) in just one month. Now that is over half of what was referred in the last year, for instance last year saw referrals worth Rs 91,647 crore. So, clearly this quarter has seen a significant jump, which is a 50 percent jump from Q4, which saw referrals worth around Rs 30,203 crore.
Big accounts like Winsome Diamonds worth Rs 4,324 crore, Electrosteel, Maheshwar hydel power project, Corporate Power, Soma group, which includes Soma Industries and Soma Isolux, Arch Pharma, Orchid Chemicals, Pradip Overseas were the big accounts, which were referred to the CDR cell in the first quarter.
Banks like State Bank of India (SBI), Bank of India and Central Bank of India are the banks with the highest exposure to some of these restructured accounts. Educomp being the latest one, which was referred in July. Educomp has a debt worth around Rs 1,344 crore.
Sources say that SBI for instance has already restructured Rs 3,000 crore of loans in Q1 and they have a pipeline of around Rs 7,000 crore, which will be due in the next couple of quarters. SBI is also expecting a lot more cases for restructuring in Q2 and Q3. So, clearly, there is no let up in the restructuring of debt for the corporate sector.