Merge Suzlon & REpower: SBI

MUMBAI: State Bank of India has said that a merger of Suzlon’s European subsidiary RE power with Suzlon would address some of its financial problems. SBI has a fund-based and non-fund based exposure of Rs 1,000 crore and Rs 2,500 crore, respectively.
Speaking to newspersons, Santosh Nair, deputy MD in charge of SBI’s corporate banking, said, “The company has a lot of cash flows and a healthy order book.It has a subsidiary called RE Power which is debt-free and has huge cash balance. But it is ring fenced by German banks. If the company is able to merge these two companies or bring the cash from that into this, the overall cost and debt will come down.”