New Delhi: State-owned Union Bank of India hopes to recover 2,000 crore from the resolution of three stressed thermal power units as there has been interest from other operators in these projects.

Three projects, including GMR Chhattisgarh Energy Limited and Prayagraj Power Generation Co Ltd (PPGCL), a subsidiary of Jaiprakash Power Ventures Ltd where the bank has exposure, are at different stages of resolution, a senior official of Union Bank of India said.

The project cost of GMR project was 11,542 crore with debt component of 8,173.9 crore while equity of 3,367.54 crore. In case of Prayagraj Power, the project cost was revised upwards to 15,537 crore which was met through 4,543.50 crore equity and 10,993.50 crore debt.

The total exposure of the bank in the power sector is about 6,000 crore, the official said, adding that 2,000 crore recovery is expected from resolution soon.

The official also said the haircut in these projects is going to be less than 50%.

Lead banker in most stressed power cases SBI had last month said that 7-8 projects worth 17,000 crore are expected to be resolved soon. There are about 34 stressed power projects and the combined value of their outstanding loans is about 1.74 trillion.

“We have looked at 13-14 accounts which would entail changes in management, investment etc. Out of these, 7-8 accounts we are looking at very closely, to get some consensus among the banks," SBI managing director Arijit Basu had said. “There are investors who have expressed interest and we are in very very advanced stage as far as these accounts are concerned. Some of these we should be able to conclude very soon," he had said.

For the first quarter ended June 2018, Union Bank of India reported a 12% increase in net profit of 130 crore. The bank had a net profit of 116.58 crore in the same quarter of 2017-18. Total income during the June quarter increased to 9,908.76 crore as against 9,567.69 crore in the same period a year ago.

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