GMR Rajahmundry's Rs 2,366-crore debt to become NPA soon

GMR Rajahmundry's Rs 2,366-crore account is all set to become a non-performing asset (NPA). In January 2016, the loan was put under the strategic debt restructuring (SDR) scheme.

Under SDR, the debt has been converted into equity. Bankers own 55 percent of GMR Rajahmundry's equity after converting the 55 percent debt. The bankers then have to find a buyer for this equity.

If they are unable to find the buyer in 18 months, the loan is declared NPA. For GMR Rajahmundry, the 18 months ended on June 30.

GMR Rajahmundry's lenders include nine banks such as IDBI Bank and IDFC.