MUMBAI: State-run Union Bank of India has tagged Suzlon Energy Ltd as a bad loan and more banks are expected to follow suit as the stressed wind turbine maker has struggled to repay its lenders, two people aware of the development said. “Union Bank had to classify Suzlon as a bad loan after repayments were delayed by over 90 days," the person said on condition of anonymity. The bad loan tag by one of Suzlon’s lenders will force other Indian banks to set aside money to cover potential losses on their exposure to the firm. Emails sent to Suzlon, Union Bank of India and State Bank of India, the leader of the lenders’ consortium to Suzlon, remained unanswered till the time of going to press. Other lenders to Suzlon include Bank of India, Bank of Baroda, Central Bank of India, IDBI Bank and Punjab National Bank.

Source: Mint July 21, 2019 19:18 UTC