NTPC Limited Secures Rs 100 Billion Loan Agreement with State Bank of India

Strategic Insights -

State Bank of India (SBI) has provided NTPC Limited, India's largest power producing firm, with a significant boost by signing a Rs 100 billion loan agreement. This monumental loan amounts to the largest extended by the bank to any Indian or foreign corporate, while also being the single largest loan extended to NTPC by any commercial bank. The loan, which has a 12-year maturity period with a four-year drawdown, marks a substantial milestone in the company's ongoing and new projects. This development comes at a time when NTPC is planning to double its capital expenditure in the current fiscal year 2011-12, with a focus on boosting generation capacity.

Key Takeaways:

  • NTPC Limited has secured a Rs 100 billion loan agreement with State Bank of India, marking the largest loan extended by the bank to any corporate entity.
  • The loan has a 12-year maturity period with a four-year drawdown period, providing a significant financial boost to the company.
  • The loan is the single largest extended to NTPC by any commercial bank, further solidifying SBI's position as a key financial partner.
  • NTPC has grown its net profit by 4.2% in the year ended March 31, 2011, with a net profit of Rs 91,025.90 million.
  • The company has increased its total income from Rs 492,301.00 million in fiscal year 2009-10 to Rs 592,478.40 million in fiscal year 2010-11.
  • NTPC plans to double its capital expenditure in the current fiscal year 2011-12, with a focus on boosting generation capacity.
  • The company has sped up its work on projects to accommodate the increased capital expenditure.
  • The loan agreement marks a significant fiscal milestone for NTPC, supporting its ongoing projects and future growth endeavors.

Statistics:

  • Rs 100 billion: The loan amount provided by State Bank of India to NTPC Limited.
  • 12 years: The maturity period of the loan agreement.
  • 4 years: The drawdown period of the loan agreement.
  • Rs 91,025.90 million: NTPC's net profit for the year ended March 31, 2011.
  • 4.2%: NTPC's growth in net profit.
  • Rs 492,301.00 million: NTPC's total income in fiscal year 2009-10.
  • Rs 592,478.40 million: NTPC's total income in fiscal year 2010-11.
  • Rs 26,400 crore: NTPC's planned capital expenditure for the current fiscal year 2011-12.

Sources:

  • NTPC Limited's official statement.
  • State Bank of India's (SBI) official statement.
  • Bloomberg (BOM: 53255) stock information.
  • Company's financial reports for fiscal years 2009-10 and 2010-11.
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