SL Bansal, CMD, Oriental Bank of Commerce, says that Government of India plans to push 50% of our loan which is on our books to the state government, of which 50% will be bonds that will be issued by the state government and the balance bonds will be issued via special vehicle which will be floated in the market.
From last two years, bankers have been sensitised by various sectors and bankers have put their foot down and have stopped funding the losses. Going forward, we will be funding only the viable projects.
Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.
Q: There is news that Rajasthan government could hike power tariffs where you have exposure in Rajasthan SEB. Will this move reduce your risk or it has already factored in? There is news that the Rajasthan government plans to convert loans into bonds, do you think there will be an additional restructuring to the ones that you have already restructured?
A: This is good