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Thursday, August 11, 2016

IDBI hit Most in Road Sector Bad Debt

IDBINEW DELHI: NPA - Non-performing asset in the road sector has hit IDBI the hardest because of its exposure to Jaypee Infratech. IDBI has 52 per cent share of the total NPA in this sector, but its bad loan to Jaypyee projects stands at Rs 4,060 cr.
Seven public sector banks have bad debt of Rs 9875 cr in the road sector, as per a Parliamentary standing committee report. Apart from IDBI, the other two banks that have been hit hard are State Bank of India (Rs 1,986 cr) and Bank of India (Rs 2,146 cr). The panel has asked the road transport and highways ministry to provide complete details of the projects allotted to Jaypee Infratech, while advising all banks to follow due carefulness while disbursing loans.
Meanwhile, IDBI share price was trading 2.40 per cent higher at Rs.68.40 on NSE today with a traded volume of 94,92,672 shares. It opened at Rs.66.70 from a previous closing of Rs.66.80. IDBI has a an impressive market cap amounting to Rs.13752.88 (Cr). The book value of the scrip stands at 109.05.
The committee has recommended the Indian government to make an inquiry into 77 projects which were languishing in 2014 to comprehend the quantum of money drawn away by unprincipled contractors in sync with government organisations and financial institutions. The report also mentioned how SBI pleaded before the committee that projects should be given approval only after ensuring 90 per cent of the land was acquired and all statutory clearances should be done before any project was awarded.The Parliamentary committee has also expressed its concern over the massive difference between the project cost expected by NHAI while inviting bids and expectations by banks while sanctioning loan.To know about the support and resistance levels and also financials of the stock, please visit IDBI share price history.

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