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Axis Bank wants to sell INR 2,000 crore Bhushan Steel loan - Report

Steel News - Published on Tue, 02 Jan 2018

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Economic Times reported that after Indian Overseas Bank offloaded its debt in
Bhushan Steel with a 40% haircut, Axis Bank has decided to put its INR 2,000-crore loan exposure to the steel company up for sale in the distressed-assets market. The report quoted said a person involved with the matter as saying that "Axis Bank does not want to stay invested in some of the large stressed assets and is looking to exit many of these large loans, as resolutions through NCLT are yet to happen. Market transactions indicate that the bank will manage to get 60% of the loan back."

In an interview with ET last week, Axis Bank deputy managing director V Srinivasan had said that resolution through NCLT so far was not encouraging. He had aid "Things have not been too encouraging but it is still early days. NCLT also didn't expect such volumes, so it is also struggling. The initial resolutions have been projected at 80-90 per cent haircut, so it is not giving the right sense. Ultimately, other than operating companies, you are going to struggle to find buyers."

Early December, Axis Bank disposed of a part of its foreign-currency loans to Essar Steel, selling the debt at 30-40 per cent discount to an overseas hedge fund.

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Posted By : Rabi Wangkhem on Tue, 02 Jan 2018
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