“We have an exposure of about 50-60 crore to truck, barge and mining machinery owners. The government has been supportive in working a package for these borrowers,” said Sudhir Jade, zonal manager, Bank of India, Goa Zone.
Apart from the government package, we have worked out a settlement scheme and are in the process of settling loans, he said.
Post the mining ban, there are many people in the industry who want to exit and still others who have come to the conclusion that mining, even when it starts, will not be the same again, said Jade. He said that there have been takers for the combination of the government subsidy and BoI’s settlement scheme amongst truck owners. However, the initial package for barge owners does not seem to be working out. The Goa Barge Owners Association are in consultation with the government and are awaiting clarity on the issue.
With banks across the country suffering stress on its asset quality, BoI’s net NPAs stayed at 2.32 per cent when the industry average is 3.4 per cent. In Goa however it is 4.5 per cent. “For Goa, the mining industry is very big. Its closure will definitely hurt us on this front,” said Jade.
