Moneycontrol
Last Updated : Jan 17, 2018 07:16 PM IST | Source: CNBC-TV18

Banks set to standardise JSPL account from NPA status: Sources

JSPL's loan had been classified by the Reserve Bank of India as a non-performing asset (NPA) and lot of banks had to bear a hit in the second quarter last year on account of the company.

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CNBC TV18

Jindal Steel and Power's loan account may get upgraded to standard status as banks may soon be able to write back the provisions they made towards the account.

JSPL's loan had been classified by the Reserve Bank of India as a non-performing asset (NPA) and lot of banks had to bear a hit in the second quarter last year on account of the company.

However, the loans wasn't classified NPA because of a default. The Angul plant, for which the RBI's 5:25 scheme was going to be approved, was not commissioned at the time and therefore violated the norms under which scheme could be approved.

It has now been a year since the divergence was first flagged and the Angul plant in Odisha has also been commissioned. Therefore, the JSPL loan may be standardised by the RBI very soon and lenders like SBI and other banks exposed to JSPL can soon heave a sigh of relief.

The company's total debt was close to Rs 45,000 crores.
First Published on Jan 17, 2018 03:25 pm
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