IDBI hit Most in Road Sector Bad Debt

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 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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