Stranded coal assets a major concern for Indian banking sector

first_imgStranded coal assets a major concern for Indian banking sector FacebookTwitterLinkedInEmailPrint分享The Economic Times:Deep in the jungles of eastern India lies an abandoned power plant, a warning symbol for the $38 billion of additional bad loans which are about to engulf the country’s banks.Like many of India’s power stations, the Jharkhand project had all the markings of success when a group led by State Bank of India lent about $700 million five years ago to build it. There’s abundant coal and water in the area, a rail track was set to run through the premises, and its promise of 1,080 megawatts of electricity was alluring in a country that faces persistent power shortages and blackouts.Yet today it stands deserted and Indian banks have had to write off three quarters of their loans, after selling the operating company to a specialist in distressed debt. Haircuts of that magnitude are now expected across the whole power sector in India, according to Bank of America Merrill Lynch, suggesting local banks face a new $38 billion wave of losses. That would be more than four times the $9 billion they’ve written off from a previous tide of bad loans from India’s troubled steel sector.“It is the largest bad-loan risk in the country,” said Vinayak Bahuguna, chief executive officer of Asset Reconstruction Co. of India Ltd., the firm which bought the Jharkhand plant from its creditors in 2015, about two years after construction stopped. “Just as the banks are beginning to put the stress on steel accounts behind them the power accounts are emerging as the new pain point.”India’s banks, which have some of the highest stressed asset ratios globally, are under mounting pressure from regulators to clean up their books as the government attempts to revive loan growth and boost the economy. That is likely to intensify the reckoning they face from lending to India’s power sector, which is plagued by fuel shortages and difficulties negotiating long term supply contracts with the country’s debt-laden electricity distributors. The problem is especially acute for state-owned banks, which are already reeling under the weight of their problem debts. Out of 21 government-controlled lenders, accounting for more than two thirds of the total loans in India, 19 reported losses in the three months to March 31.After taking haircuts of between 40-60 percent on their loans to troubled steel projects, the banks face a 75 percent loss ratio on their power lending, according to the Bank of America Merrill Lynch estimate.More: Abandoned power plant a $38 billion warning sign for Indian bankslast_img read more

No. 2 Syracuse men’s soccer’s undefeated start ended by No. 3 Notre Dame’s late goal

first_img Facebook Twitter Google+ With just 18 seconds left in regulation, Jon Gallagher dealt Syracuse its first blemish of the season. The Notre Dame forward’s left-footed shot from outside the box found the left corner past Orange goalkeeper Hendrik Hilpert, negating a Syracuse comeback and handing the Orange its first loss or tie in nine games this year.The Orange gave away the ball in its own half and Gallagher found it at his feet before darting ahead and hammering the final nail in Syracuse’s coffin from 20 yards out.“Oh look, we’re pretty low right now,” McIntyre said over the phone after the game. “It’s an emotionally draining way … when you put everything out there, when you emotionally put everything on the line … our game can be so ruthless. It’s gut-wrenching.”No. 2 Syracuse (8-1, 2-1 Atlantic Coast) tied the game with just over 10 minutes remaining on Miles Robinson’s goal off a corner kick, but SU was unable to hold on in a 2-1 loss against the No. 3 Fighting Irish (7-1, 2-1 ACC) at UND’s Alumni Stadium on Friday night.AdvertisementThis is placeholder text“Look, you never want to lose games,” McIntyre said. “We’ve come a long way as a program when we’re disappointed to go on the road and lose against an elite Notre Dame team with 30 seconds left. That’s a good problem. It’s good for us to come to an environment like this and expect to come away with results.” It wasn’t until the 79th minute that Syracuse broke through, when Robinson got a head on Oyvind Alseth’s corner kick — one of eight Syracuse corners in the second half compared to Notre Dame’s zero — to knot the score at one.Robinson’s goal was his fourth of the season, tying Nanco for the team lead. It’s his eighth goal in one and a half seasons with Syracuse as he continues to establish himself as one of the ACC’s premier threats in the attacking third, even as a defender.The celebration lasted only 10 minutes, though, when Gallagher’s ACC-leading sixth goal of the season found the back of the net.Two seasons ago, it was a freshman Gallagher that drew a red card on former SU center back Skylar Thomas with about 15 minutes left in the game to set up a free kick that would send then-No. 20 Syracuse to a 1-0 defeat against then-No. 4 Notre Dame at SU Soccer Stadium.Two years later, it was Gallagher wreaking havoc again, this time sealing a fate the Orange hadn’t yet experienced in 2016.“Look, it’s a wonderful left-footed strike to win a game. Obviously from our perspective it’s a disappointing way to end,” McIntyre said. “But it happened … Our feeling was that we were the team that was gonna go on and win the game.“As difficult as this is, we’ll regroup, we’ll learn from it and hopefully we’ll continue to move forward.” Comments Published on September 23, 2016 at 10:15 pm Contact Matt: mcschnei@syr.edu | @matt_schneidman For the second straight game, the Orange conceded first. Thirteen minutes after subbing in, freshman midfielder Jack Casey put the hosts ahead less than a minute before half off an Evan Panken free kick. On Tuesday night against Cornell, Syracuse was the benefactor of a Miles Robinson goal right before the break that proved to be the turning point in a 3-1 SU win. Three days later, the Orange found itself on the other end of the momentum swing heading into the half in its toughest test of the year thus far.Out of the break, Syracuse’s attack generated far more of a threat than in the opening 45 minutes. Chris Nanco and Kamal Miller forced UND goalie Chris Hubbard into two saves, his only ones of the game, within 30 seconds of each other. Five minutes later, Sergio Camargo beat Hubbard with a low shot but it deflected off the post and out of harm’s way.“We just imposed ourselves a little bit more,” McIntyre said. “Physically, we kind of pushed the ball forward a little bit quicker, worked extremely hard and connected passes in their half.”last_img read more