Banks,power finance cos up on SEB restructuring report

Shares in state-owned banks gained on hopes that government would take a decision on restructuring debts of State Electricity Boards.

Written by Agencies | Published: September 18, 2012 12:08 pm

Shares in state-owned banks gain on hopes that the government would soon take a decision on restructuring debts of State Electricity Boards (SEBs).

A report had earlier said that a cabinet committee is likely to take a call on financial restructuring of SEBs on Thursday.

The report added states will take a burden of 50 per cent of the debt and issue bonds against it,while the other 50 percent of debt will have to be restructured by the banks.

State-owned banks with relatively higher exposure to SEBs like Oriental Bank of Commerce,Canara Bank and Central Bank gain between 4 percent and 7 per cent.Power financiers like Power Finance Corp and Rural Electrification Corp gain 4 percent each.

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