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BoB fails to sell Bhushan Steel & Essar Steel loans - Report

Steel News - Published on Tue, 02 Jan 2018

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Economic Times, citing two senior bank executives, reported that Bank of Baroda last week failed to sell bad loans amounting to INR 2,300 crore due from Bhushan Steel and Essar Steel as the reserve price was above market rates and only overseas investors and private equity funds were allowed to bid. The report quoted a source as saying that “As many as 22 foreign and private investors had shown interest in the loan but did not seal the deal. This only shows that the reserve price is unrealistic."

A Bank of Baroda executive who did not want to be named said the auction didn't succeed because funds could not get clearance from overseas parents due to the Christmas and New Year holiday break. The assets could be put up for sale again soon, the person said.

ARCs weren't invited to bid in the Bank of Baroda bad debt auction held last week.

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Posted By : Nanda Koijam on Tue, 02 Jan 2018
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