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SBI signs pact with NTPC for $120-million loan

Tanmaya Kumar Nanda
India Abroad Correspondent in New York

The State Bank of India, New York, on Thursday signed an agreement with the National Thermal Power Corporation of India for providing a foreign currency loan of $120 million.

The agreement was signed by P Narasimharamulu, director, finance, NTPC and S Iyengar, executive vice-president, SBI, New York at the SBI office in Park Avenue (S).

This is the first foreign currency loan provided by the SBI to NTPC in the past year, and the fourth foreign currency loan in succession that has been arranged by SBI for NTPC.

"It is a term loan, and will be used to refinance an existing loan, which will result in substantial savings to NTPC and the Indian exchequer," Narasimharamulu told India Abroad.

The signing function was presided over by Shashi Tripathi, India's Consul General to the United States.

NTPC recorded a gross turnover of Rs 192.20 billion ($4.10 billion) in the year 2000-2001, which was an increase of 11.85 per cent over last year's turnover of Rs 171.84 billion ($3.67 billion).

NTPC's profit for the fiscal ending 2001 touched Rs 36.12 billion ($771 million). As a result of its financial stability, NTPC is today the largest beneficiary of World Bank funding, which is almost $4 billion.

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