The State bank
of India (SBI) chairman Pratip Chaudhury has expressed concern about the bank’s
exposure to the steel and mines sector, which is about Rs.19000 crore.
Speaking to the media
he said, “We are concerned about our exposure to the steel sector. We are
facing slippages…Due to some recent restrictions and environmental
regulations the mining and steel sector has suffered in states like Odisha, Goa
and Karnataka. But we have decided to remain patient as we expect the sector to
back on track soon.
“We have an
exposure of 18,000 crore to the steel sector in the country and out of this we
have lent 4,000 crore in Odisha. Similarly our total exposure to the mining and
mining related sectors stands at Rs. 1000 crore.†He said.
The bank has
financed projects like Bhusan Steel, NINL, Vedanta Aluminium, Paradeep Refinery
of the IOC.
Not only SBI,
other banks have also expressed similar concerns about the steel and mines
sector. Last month UBI has also showed reluctance to extend more credit to the
sector.
“We have already
overexposed to the steel and mines sector and we do not want to increase it.
Overall we have disbursed as much as Rs.8000 crore to the steel and mines
sector and a large chunk of it goes to the units in the eastern India†said Mr.
Bhaskar Sen, Chairman and Managing Director of Kolkata headquartered United Bank
of India.
While the mining
sector is facing several clampdowns from the government, the steel and
aluminium sector is going through problems like raw-material crisis and
regularity huddles. In Odisha the government has closed down more than hundred
mines after allegations of illegal mining. On the other hand Odisha’s steel
units are facing severe raw material crisis due to the closure of mines.
Reported by Tapan Moharana
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