SBI Clears RINL Loan Restructuring for Vizag Steel
Why in the news
In April 2025 SBI’s board backed a debt restructuring for RINL’s Visakhapatnam steel plant, a step other public-sector banks are expected to copy.
Key facts
- Plant: RINL’s 7.5 MTPA unit at Visakhapatnam, Andhra Pradesh.
- Terms: interest cut to below 9% with lower margin money; plan prepared by SBI Capital Markets.
- RINL is now a standard account, repaying ahead of schedule; it was near NPA status in June 2024.
| Money element | Amount |
|---|---|
| Total banking exposure | Over ₹20,000 crore |
| SBI exposure | ₹6,400 crore |
| Government bailout | ₹11,440 crore |
| Cabinet-approved equity | ₹10,300 crore (over ₹6,000 crore already infused) |
Significance
- Milestone for RINL’s turnaround and borrowing capacity.
- Signals coordinated government-bank action to revive strategic PSUs and sets a precedent for stressed public-sector firms.
Exam angle
- Lead lender now: SBI (earlier Union Bank of India).
- Terms: restructuring, NPA, equity infusion.