The Bruhat Bengaluru Mahanagara Palike (BBMP) has restructured its loan outstanding of ₹1,348 crore, with State Bank of India (SBI) taking over most of the portfolio and charging a lesser rate of interest.
“This will save ₹124.9 crore for the civic body because of the difference in the rate of interest,” said M.K. Gunashekhar, Chairman, Standing Committee on Taxation and Finance, BBMP in a press release.
At present, all the loans are with Housing and Urban Development Corporation (HUDCO) at an interest rate of 10.15 percent. SBI will take over ₹986 crore and charge interest at the rate of 8.10 percent.
“Of the 11 banks, the lowest rate of interest was being charged by SBI, which was further brought down to 8.10%. We will sign a MoU with SBI,” he added.
As the valuation of the properties pledged have gone up, BBMP has successfully got back Malleswaram market from HUDCO.
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