"This is an industry-wide problem," Rajendran said in a phone interview, adding an early reallocation of the coal blocks could help lower the impact on the companies and the lenders. 
Special 
"This is an industry-wide problem," Rajendran said in a phone interview, adding an early reallocation of the coal blocks could help lower the impact on the companies and the lenders. State-run Andhra Bank has a loan exposure of Rs 43.46 billion ($711.8 million) to companies that have been ordered by the Supreme Court to return coal blocks, its chairman CVR Rajendran said on Thursday.
Andhra Bank's total exposure to steel and power companies is between Rs 120 billion and Rs 130 billion, Rajendran told Reuters.
The bank shares were down over 6 per cent by 2:01 pm, extending Wednesday's 4 per cent fall after the Supreme Court verdict. Lenders have been hit by worries that the verdict scrapping coal allocations over two decades could lead to a rise in bad loans.
"This is an industry-wide problem," Rajendran said in a phone interview, adding an early reallocation of the coal blocks could help lower the impact on the companies and the lenders.
"If it happens at the earliest, it should not have a major impact."
(Reuters)
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today
