New Delhi, Sep 5 (PTI) State-owned Union Bank of India hopes to recover Rs 2,000 crore from the resolution of three stressed thermal power units as there has been interest from other operators in these projects.Also Read - Bank Holiday Alert: Banks to Remain Closed For Next 6 Consecutive Days From Today | Complete List Here
Three projects, including GMR Chhattisgarh Energy Limited and Prayagraj Power Generation Co Ltd (PPGCL), a subsidiary of Jaiprakash Power Ventures Ltd where the bank has exposure, are at different stages of resolution, a senior official of Union Bank of India said. Also Read - RBI Restricts Mastercard from Onboarding New Domestic Customers In India From July 22 | Deets Inside
The project cost of GMR project was Rs 11,542 crore with debt component of Rs 8,173.9 crore while equity of Rs 3,367.54 crore. In case of Prayagraj Power, the project cost was revised upwards to Rs 15,537 crore which was met through Rs 4,543.50 crore equity and Rs 10,993.50 crore debt. Also Read - Poll Strategist Prashant Kishor Meets Rahul Gandhi in Delhi, Punjab Elections Likely on Agenda
The total exposure of the bank in the power sector is about Rs 6,000 crore, the official said, adding that Rs 2,000 crore recovery is expected from resolution soon.
The official also said the haircut in these projects is going to be less than 50 per cent.
Lead banker in most stressed power cases SBI had last month said that 7-8 projects worth Rs 17,000 crore are expected to be resolved soon There are about 34 stressed power projects and the combined value of their outstanding loans is about Rs 1.74 lakh crore.
“We have looked at 13-14 accounts which would entail changes in management, investment etc. Out of these, 7-8 accounts we are looking at very closely, to get some consensus among the banks,” SBI managing director Arijit Basu had said.
“There are investors who have expressed interest and we are in very very advanced stage as far as these accounts are concerned. Some of these we should be able to conclude very soon,” he had said.
For the first quarter ended June 2018, Union Bank of India reported a 12 per cent increase in net profit of Rs 130 crore.
The bank had a net profit of Rs 116.58 crore in the same quarter of 2017-18.
Total income during the June quarter increased to Rs 9,908.76 crore as against Rs 9,567.69 crore in the same period a year ago.
This is published unedited from the PTI feed.