Banks recasting Rs.1,300-cr loans to Goa mining sector

Written by Press Trust of India | Panaji | Updated: Dec 11 2012, 06:11am hrs
Following the go-ahead by the Reserve Bank of India, banks have begun restructuring loans worth around Rs.1,300 crore given to iron ore miners and other stakeholders, such as truckers and shipping lines.

The Goa Chamber of Commerce and Industry (GCCI), which has intermediated the efforts to get the loans restructured, said the banks have already begun the debt restructuring process.

Canara Bank, which has an exposure of R37 crore, has already begun recasting the loan, while Corporation Bank is also in the process of loan recast, the chamber said.

The RBI during a recent meeting of the empowered committee in Goa had told the banks that they had no objections for restructuring the debt of the mining industry if they are based on the prescribed guidelines, GCCI president Manguirish Pai Raikar said.

According to a rough estimate, banks have around R1,300-crore exposure to the troubled industry.