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Home > News > Indian Bank Restructures Mumbai Metro Loan Account

Indian Bank restructures Mumbai Metro loan account

Infrawindow News Bureau

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Mumbai

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May. 18, 2012, 02:45 PM

Indian Bank restructures Mumbai Metro loan account Indian Bank chairman and managing director TM Bhasin said that the bank has restructured the Mumbai Metro loan account worth Rs 108 crore in the March 2012 quarter, reports Financial Express. This is mainly due to the delays in handing over land to a depot, the construction of a bridge over the Andheri station as also in the right of way and other clearances.

 

The metro project was awarded by Mumbai Metropolitan Region Development Authority (MMRDA) through a global competitive bidding process on PPP framework to a Reliance Infrastructure-led consortium in 2007.

 

The scope of the project includes designing, financing, constructing along with the operating and maintaining about 12 km of elevated metro with 12 stations enroute. The project borrowed loans from a group of lenders, of which Indian Bank's share isaround 4-5%, said Indian Bank ED Rajeev Rishi. However, he added that only Indian Bank has restructured the money lent to Mumbai Metro as directed by the RBI. The other lenders have not done so as yet.

 

Rishi said that the restructuring was done after RBI officials conducted its Annual Financial Inspection (AFI) earlier in the year. AFI focusses on the statutorily mandated areas of solvency, liquidity and operational health of the bank. “I cannot name the other banks that have also lent to Mumbai Metro. Maybe they were not asked to restructure the loan because a different set of RBI officials inspected these other banks and felt it was not necessary to restructure the loan,” added Rishi.




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