Cash strapped PSEB seeks loan for Rs 400 crore

Patiala, July 25 (UNI) The cash-strapped Punjab State Electricity Board (PSEB) has approached major banks for loan of Rs 400 crore during August, 2008 to be able to make payments for purchase of coal, railway freight and other expenses.

At least seven public sectors banks today responded to the call of Punjab State Electricity Board (PSEB) to give quotations for secured loan of Rs 400 crore for the month of August, PSEB sources said.

The banks include which participated in today's bid were Punjab National Bank, UCO bank, Central Bank, Vijaya Bank, Oriental Bank of Commerce, Vijay Bank, Union Bank and Indian Overseas Bank.

The PSEB had sought quotations from major public and private sector banks seeking quotations for the secured loan of Rs 400 crore for the tenure of one year. The loan shall be secured against post dated cheques, PSEB sources said.

The banks have given 11.50 to 12.50 percent rate of interest to the financial advisor, sources added.

UNI XC-JN MMS1747