Bank of Maharashtra restructures around Rs 1,100-cr debt of Rajasthan SEB

MUMBAI: Bank of Maharashtra (BoM) has restructured around Rs 1,100 crore loan, that has been extended to Rajasthan State Electricity Board (RSEB), in the third quarter ended December 31, a top official said on Friday.

"The loan extended to Rajasthan State Electricity Board, which is around Rs 1,100 crore, has been restructured in the third quarter to give more time to the board for making repayment," said the official, who wished not to be named.

The public sector lender had got a good deal as part of the restructuring process, he said.

"We have received a State Government guarantee along with higher rate of interest as part of debt recast deal," he said, adding there will be a moratorium of around six months to one year for RSEB with regard to loan repayment.

As per banking sources, a total loan amount of around Rs 6,000 crore, which has been given to RSEB, has been restructured by various banks.

While there are around six to seven lenders that have exposure to the state board, Central Bank of India is the lead institution among the consortium of lenders.

Recently, around Rs 7,000 crore of loan of Uttar Haryana State Electricity Board was restructured by a UCO Bank-led consortium.

Also, the second largest public sector lender, Punjab National Bank, which had recast Rs 2,500 crore of loans in the second quarter, had said out of this amount as much as Rs 1,800 crore was from the Tamil Nadu SEB.

Referring to debt repayment scenario by SEBs, the BoM official said the situation is set to improve in the near future as tariffs are likely to be revised soon.

Source: EconomicTimes