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Banks can increase lending now – Mr Piyush Goyal

Steel News - Published on Mon, 21 May 2018

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THE ASIAN AGE reported that union finance ministry successful acquisition of debt-ridden Bhushan Steel by Tata Steel through insolvency and bankruptcy law will increase lending capacity of banks. Finance minister Piyush Goyal said that “Lenders recovered almost entire principal loan of Bhushan Steel through INR 36,400 crore transparent bid by Tata Steel and also got 12% stake in the company. Liquidation value of Bhushan Steel was INR 14,541 crore but creditors received almost four times the amount. This was possible due to the robust and transparent Insolvency and Bankruptcy Code brought by this government.”

He said that for the first time such a large loan resolution has been achieved through upfront payment received by banks through sale of a company. He added that “This is a record step towards resolving the legacy of unprecedented amount of bad bank loans inherited by this government.”

Finance minister said that NPA resolution process is being done through a fair and transparent Insolvency & Bankruptcy Code helping boost both the banking sector and the economy.

Mr Goyal said that “With recovery of NPAs, banks will now be in a position to offer more and affordable credit to major sectors of the economy especially the MSME sector. This will boost employment & the economy even more.”

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Posted By : Rabi Wangkhem on Mon, 21 May 2018
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