Union Bank of IndiaBSE -3.66 % has classified Reliance CommunicationsBSE -8.90 % (Room) as non performing loan in the third quarter of this fiscal year, said two senior officials who did not want to be named.
The development comes at a time when the telecom company is undergoing debt restructuring which involves selling some of it's assets to reduce debt.
The account may slip into NPA category for most banks but hopefully it will be reversed soon, said one of the person quoted above. Union Bank official decline to quantify the amount that slipped into NPA basket. "As a policy, we do not comment on specific clients," said a Union Bank official.
In the last week of December, Rcom announced sell it's wireless spectrum, media convergence node assets, 43,000 towers, and around 178,000km of fibre network for an undisclosed sum to Reliance Jio.
The account has slipped into non performing category for the quarter ended December 2017 soon after the standstill pack with lenders ended.
According to this pack, lenders would give time to Rcom to repay loans till December 2017 failing which a majority of debt would be converted into equity. Also, there was a standstill on Rcom's payments of loan obligations to banks.
The company has outstanding dues of Rs 45,000 crore.
The development comes at a time when the telecom company is undergoing debt restructuring which involves selling some of it's assets to reduce debt.
The account may slip into NPA category for most banks but hopefully it will be reversed soon, said one of the person quoted above. Union Bank official decline to quantify the amount that slipped into NPA basket. "As a policy, we do not comment on specific clients," said a Union Bank official.
In the last week of December, Rcom announced sell it's wireless spectrum, media convergence node assets, 43,000 towers, and around 178,000km of fibre network for an undisclosed sum to Reliance Jio.
The account has slipped into non performing category for the quarter ended December 2017 soon after the standstill pack with lenders ended.
According to this pack, lenders would give time to Rcom to repay loans till December 2017 failing which a majority of debt would be converted into equity. Also, there was a standstill on Rcom's payments of loan obligations to banks.
The company has outstanding dues of Rs 45,000 crore.
Union Bank reported slippages of Rs 4187 crore in third quarter against Rs 3294 crore in corresponding quarter last year. It reported net loss of Rs 1250 crore in third quarter.
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