Banks Working With RBI to Provide Relief to Some Power Cos: SBI
New Delhi: Banks are working with the RBI to explore the possibility of extending loan repayment period for those power sector companies which are facing problems in project implementation, a top SBI official said.
"...Risk in power sector is micro not macro...In some cases they [power companies] have said that implementation of project got delayed due to reasons beyond their control. They want [us] to extend the moratorium.
"We are working with RBI how that can be done without the banks being required to make any provisioning," SBI Chairman Pratip Chaudhuri said here.
Speaking to reporters after pre-Budget consultation with Finance Minister Pranab Mukherjee, the SBI Chief said the bank has an exposure of around 32,000 crore in the power sector.
"We are giving loans to all big companies...It is not right for us to equate all the companies," he added.
Public sector banks had exposure worth over 2.97 lakh crore to the power sector at the end of second quarter of the current fiscal, with maximum credit doled out by SBI.
Country's leading public sector lender SBI and Bank of India accounted for nearly 87,000 crore of the total loans given to the power sector till September 30, 2011.
Another major lender to the power sector is Punjab National Bank, whose exposure stood at 20,410 crore.
Maharashtra, Gujarat and Rajasthan are among the states that have been high amount of loans in the power sector from public sector banks.