The State Bank of Travancore (SBT) has sanctioned a loan of Rs 100 crore to the ailing Kerala State Road Transport Corporation (KSRTC) for its modernization. An SBT release said that the bank had agreed to provide Rs 275 crore as its contribution to the consortium of nine banks that would together provide Rs 1,300 crore as loan for a 12-year period to the transport utility.

The low-interest, long-term deal will help in a yearly savings of Rs 32.5 crore in terms of interest alone, said Chairman and managing director of KSRTC, Antony Chacko. As per the agreement, the KSRTC had to mortgage 79 acres and 25 cents in its 25 units as collateral. It has a total land bank of 426 acre.

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