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Banks restructure Rs 18,353cr of loans given to Raj Discoms
Troubled state electricity boards (SEBs) continue to haunt bank balance sheets. Latest is the Rajasthan Electricity Distribution companies that have over Rs 18,000 crore of loans, which banks have been forced to restructure, reports CNBC-TV18's Gopika Gopakumar.
Troubled state electricity boards (SEBs) continue to haunt bank balance sheets. Latest is the Rajasthan Electricity Distribution companies that have over Rs 18,000 crore of loans, which banks have been forced to restructure, reports CNBC-TV18's Gopika Gopakumar.
State electricity distribution companies are lining up for restructuring of their debt. Bankers have agreed to restructure over Rs 18,000 crore of loans given to three Discoms in Rajasthan, which include Ajmer, Jodhpur and Jaipur.
Bankers will convert short term loans given to these Discoms into long term loans of 5 year - 10 year. Out of this Rs 18,000 crore, Central Bank has the largest exposure of around Rs 6,000 crore, Bank of Baroda has around Rs 1,600 crore and Bank of Maharashtra around Rs 1,100 crore. The average interest on these loans has now been fixed at 12.75%.
Bankers have also agreed to get some nominal fresh funding to these three distributing companies and in return the Rajasthan government has agreed to give a guarantee on these loans. This restructuring would lead to jump in banks' restructuring portfolio not just in this quarter, but also in subsequent quarters going forward.
