ICICI Bank slips over 3% on concerns over loans to Dabhol power plant

ICICI Bank slips over 3% on concerns over loans to Dabhol
Shares of India's largest private sector lender ICICI Bank fell as much as 3.5 per cent in the morning trade on BSE on the media reports that it has raised loan alarm over default by Dabhol power plant which is lying idle due to inadequate fuel supplies.

At 10:10 hours, shares of the bank were trading at Rs 899.75 a piece, down 3.3 per cent from previous close on BSE.

According to a Times of India report, ICICI Bank chief has written a letter to the power minister Jyotiraditya Scindia saying that lenders have around Rs 8,500 crore exposure in the project that operated at merely 30 per cent capacity in 2012-13.

Kochhar said that the plant has to run at a capacity of at least 85 per cent to be able to generate enough cash for paying loan instalments.

Dion Global Solutions Ltd.

Story first published: Monday, October 7, 2013, 12:58 [IST]
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