Comments
Indian state-run Andhra Bank has a loan exposure of Rs 4,346 crore ($711.8 million) 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 Rs 12,000 crore and Rs 13,000 crore, C.V.R. Rajendran told Reuters.
Andhra Bank shares were down 5.85 per cent by 2 p.m., extending Wednesday's 4 per cent 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."
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.