Power loan provisions by PSBs likely to touch $400 bn in September quarter

Power ministry panel had listed 34 coal-fired plants as stressed assets

Public sector banks are staring at the prospect of making provisions for Rs 2.2 trillion in the September quarter on loans given to power companies if a solution to sick projects in the country is not found.

Banks are trying their best not to send power sector defaulters to the National Company Law Tribunal (NCLT) for debt resolution under the Insolvency and Bankruptcy Code because it would mean making immediate provisions for 50 per cent of the loan.

“This (September 2018 quarter) will be the most crucial quarter for the banking sector as another big chunk of bad loans are