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| Dabhol turns NPA in SBI's books too |
| BS Reporter / Mumbai May 10, 2009, 00:57 IST |
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State Bank of India has treated the loan given to Ratnagiri Gas and Power (earlier called Dabhol Power Company) as a non performing asset (NPA), following the Reserve Bank of India’s advice to all lenders to the project to use prudential asset-classification norms.
The bank saw its gross NPAs rise to Rs 15,588 crore at the end of March 2009 from Rs 12,837 crore a year ago. Domestic NPAs increased Rs 1,774 crore. Of this, Ratnagiri Gas and Power alone contributed Rs 1,651 crore.
The power project should convert into standard asset by June this year, SBI Chairman OP Bhatt said.
Bangalore-based Canara Bank, which has an exposure of around Rs 350 crore, had classified the Ratnagiri Gas and Power account as NPA by December 2008.
RBI, in late-April, had advised banks to follow the existing asset classification norms for NPAs. This was irrespective of the new tariff plan submitted by Ratnagiri Gas and Power to the Central Electricity Regulatory Commission. The government, on its part, had communicated to RBI that banks’ exposure to the company — amounting to Rs 7,500-8,000 crore — should be restructured as a standard asset following the tariff plan.
Asked about the status of the account in IDBI’s Bank’s books, an official said the RBI communication about the power company came after the bank closed accounts for 2008-09. It (bank) is following the asset norms during the present quarter.
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