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Bank of Baroda confident of resolving 4 power assets outside NCLT

Updated : August 29, 2018 12:59:51 IST

After Allahabad High Court declined to give private power companies any interim relief on the Reserve Bank of India (RBI) circular, Bank of Baroda on Wednesday said the bank is fairly confident that at least four power assets should get resolved outside the National Company Law Tribunal (NCLT).

In an interview to CNBC-TV18, Papia Sengupta, executive director, said state-run bank has an exposure of Rs 11,000 crore to assets, which may go to NCLT, but Bank of Baroda has already provided provisions for these accounts.

“If we look at those assets, which have more than Rs 2,000 crore outstanding from the banking sector as per the RBI’s February 12 circular, we have 30 of these assets which, if not resolved, will need to go to the NCLT," Papia said.

“Whether they go to NCLT or not, these are all declared as stressed assets and the required provisioning is there. So we don’t see that as an issue. But definitely, the recovery part of it's an issue, because whether we provide or not, ultimately the bank ends up taking the hit,” she added.
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