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SBI biggest beneficiary of Bhushan Steel sale

Steel News - Published on Thu, 24 May 2018

Image Source: financialexpress.com
First Post reported that country's largest lender SBI will be the biggest beneficiary of resolution of debt-ridden Bhushan Steel as its bottomline will go up by as much INR 1,300 crore. The other banks which will get a major share of the sales proceeds include Punjab National Bank (INR 700 crore), Canara Bank ( INR 600 crore) and Bank of India ( INR 500 crore). Syndicate Bank and Oriental Bank of Commerce will get INR 400 crore each. In all, the consortium of banks led by SBI would get around INR 7,500 crore. Besides, the lenders will also get equity in the steel company.

An official said that as a result of the debt resolution, the non-performing assets or bad loans of SBI will come down by as much as INR 11,000 crore. PNB and Canara Bank will see NPA reduction of INR 3,800 crore and INR 2,300 crore respectively when the first quarter numbers are announced.

Together these lenders will shed NPA burden to the tune of INR 35,000 crore out of INR 1.75 lakh crore of the 12 large NPA cases which are under the resolution of the Insolvency and Bankruptcy Code. These cases were referred by RBI in June last year.

In addition, sources said, these banks would get an opportunity to reap future dividends as they would be getting around six crore equity shares in the steel company.

Tata Steel said INR 1,200 crore will be paid to operational creditors of BSL over a period of 12 months as per their admitted claims and as per the terms of the approved resolution plan.

Source :

Posted By : Nanda Koijam on Thu, 24 May 2018
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