Visakhapatnam Steel Plant borrowed Rs 6,200 crore from the State Bank of India (SBI) in order to finance its business expenditure.
Speaking to reporters, Pratip Chaudhuri, Chairman of SBI said the bank’s loan to the RINL “is the biggest contribution it is making to the industrial development of this region in particular and Andhra Pradesh in general.
So many ancillaries will be coming up in the vicinity of the RINL and the SBIÂ’s contribution therefore cannot be overemphasised, he said. He said the rate of interest would be 9.7 per cent or 9.95 per cent for the loan.
Apart from the loan to the RINL, SBI lent Rs 6,200 crore to others in the three districts of Visakhapatnam, Vizianagaram and Srikakulam comprising the Visakhapatnam zone and the deposits are Rs 8,000 crore, he said.
Meanwhile, the SBI chief said the bank was calling back the loan given to to Kingfisher Airlines and taking legal steps. All the banks put together have lent Rs 6,000 crore or so and our exposure is Rs 1,600 crore or so. SBI asked the management to revive it, but there seems to be no such possibility and therefore the bank had to take legal action to recover our money, he said.
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