Lenders are worried that scrapping coal allocations could lead to rise in bad loans
Andhra Bank's total exposure to steel and power companies is between Rs12,000 crore and Rs13,000 crore
Mumbai: State-run Andhra Bank has a loan exposure of 4,346 crore (Rs 43 billion) to companies that have been ordered by the Supreme Court to return coal blocks, its chairman said on Thursday.Andhra Bank’s total exposure to steel and power companies is between Rs12,000 crore and Rs13,000 crore, C.V.R. Rajendran said.
Andhra Bank shares were down nearly 12 per cent on Thursday, extending Wednesday’s four percent fall after the Supreme Court verdict. Lenders have been hit by worries that the verdict scrapping coal allocations over two decades could lead to a rise in bad loans. “This is an industry-wide problem,” Rajendran said in a phone interview, adding an early reallocation of the coal blocks could help lower the impact on the companies and the lenders. “If it happens at the earliest, it should not have a major impact,” the bank chairman said.
( Source : reuters )
Next Story
