The Committee on Economic Affairs yesterday cleared a proposal to allow state electricity boards of Jharkhand, Bihar and Andhra Pradesh to convert their outstanding loans till March 2013 into bonds as part of an amendment to the discom debt restructuring package.
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Shubhalakshmi Panse of Allahabad Bank is not worried. She says the bank does not have any term loan exposure to Jharkhand and Bihar. And while the bank has a very small exposure of Rs 28.08 crore to Andhra Pradesh, it is a performing asset and a very recent loan of a small quantum.
Below is the verbatim transcript of Shubhalakshmi Panse's interview on CNBC-TV18
Q: Have you heard from the cabinet committee or from the State Electricity Board (SEB). What are we likely to expect in terms of your loans to Jharkhand for instance?
A: As far as Jharkhand is concerned, we do not have any term loans. We have only cash credit facility. Since no term loan is there it would not have an impact because it is term loans which are getting converted.
Q: So you have term loans with any of the others - Bihar or Andhra Pradesh?
A: We do not have any exposure to Bihar and as far as Andhra Pradesh is concerned, we have a very small term loan of Rs 28.08 crore which is a performing asset and there are no pressures on this particular account.
Q: You won’t be part of the bailout package when Andhra Pradesh’s overall bailout is designed?
A: No. it is a very recent loan and a very small quantum.
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