SBI hopes to resolve 7-8 stressed power assets by Nov 11: Chairman

State Bank of India (SBI) hopes to resolve 7-8 stressed power assets with an exposure of about ~170 billion during the breather given by the Supreme Court till November 11, SBI Chairman Rajnish Kumar said Thursday.

The Supreme Court has asked the banks to maintain status quo and not to initiate insolvency proceedings against defaulting power companies till November 11, 2018, when it would hear the case again. During this period lenders would be able to resolve stressed assets.

"On my radar there are seven or eight projects. We are working only on that. If there is 100 per cent consensus among lenders only then it (resolution of stressed power assets) would happen," Kumar told reporters when asked whether the SBI would be able to resolve any stressed assets during the breather till November 11.

About any resistance from lenders to resolve these stressed assets, he said, "They are all at various stages of approval. So at this stage, it is not the right statement to say that there is resistance. We have to give time to boards and management committees of lenders to take a decision.”

About the SBI exposure in those assets, he said, "SBI has exposure of ~170 billion in these projects." About the Supreme Court order, he said, "Whatever legal options or whatever is permitted by law and regulation would be done. Right now the Supreme Court has said that maintain status quo (on February 12 circular) in respect of petitions pending in high courts. So everybody is maintaining the status quo."

The RBI framework provided for a strict timeline for resolution of these bad loans where debt is ~20 billion or more.

"IF THERE IS 100 PER CENT CONSENSUS AMONG LENDERS ONLYTHEN IT (RESOLUTION OF STRESSED POWER ASSETS) WOULD HAPPEN" RAJNISH KUMAR Chairman, SBI