In a booster for some banks, reports indicate that banks are close to resolving 7-8 power projects under 'Samadhan', a debt resolution scheme led by State Bank of India’s (SBI).
However, Anshula Kant, managing director of SBI, in an interview with CNBC-TV18, said that the update on Samadhaan was not very encouraging.
“The problem is that there are so many lenders and there are so many different interest which is creating a problem of consensus getting everybody to say yes, but I am hopeful at least of 4; if those 4 also go through then for SBI it will mean more than Rs 12,000 crore reduction in non-performing asset (NPA),” she said.
Many power purchase agreements (PPA) have to be complied with before resolution happens, she added.
Talking further about NPA, Kant said, “Our provision cover for power NPAs is 40 percent and above.”
She expects resolution of some power assets over the next 2 months.