Custom Search

Sunday, November 27, 2011

PSBs have Rs 2.97 lakh cr loan exposure to power sector

Public sector banks have extended loans worth over Rs 2.97 lakh crore to the power sector at the end of September quarter, with maximum credit doled out by State Bank of India.

Official figures show that 26 state-run banks have a total exposure of Rs 2,97,762.53 crore to the power sector, which is currently grappling with acute fuel shortages and mounting losses of electricity distribution companies.

Country’s leading public sector lenders State Bank of India (SBI) and Bank of India accounted for nearly Rs 87,000 crore of the total loans given to the power sector till September 30.

SBI’s exposure stood at Rs 47,880.89 crore while that of Bank of India was Rs 39,078 crore.

Another major lender to the power sector is Punjab National Bank, whose exposure stood at Rs 20,410 crore.

Amid worsening health of power distribution companies and stranding of projects due to fuel shortages, there are rising concerns about possible default on loans extended to the power sector.

Maharashtra, Gujarat and Rajasthan are among the states that have been high amount of loans in the power sector from public sector banks, official data showed.

Going by reports, banks are exercising caution in lending to the power sector.

As per estimates, the aggregate debt of state power utilities stood at Rs 3,10,912 crore in FY’10.

Power sector is expected to see a capacity addition of nearly 1,00,000 MW in the 12th Five Year Plan (2012-17).

A recent report by rating agency Fitch said that losses of power entities in the states of Rajasthan, Tamil Nadu, Madhya Pradesh, Uttar Pradesh and Bihar, alone accounted for over 70 per cent of the overall loss incurred by state power utilities (SPUs) nationwide in fiscal year 2010.

0 comments:

Post a Comment

Popular Posts

 
Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site