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IOB sells Bhushan Steel debt to SSG Capital at 40% write-off - Report

Steel News - Published on Tue, 02 Jan 2018

Image Source: india.com
Business Standard reported that state owned Indian Overseas Bank has sold its Bhushan Steel account with less than 40% write off (haircut is the formal term); SSG Capital has acquired the debt. Sources in IOB said that the process should be complete by this weekend. SSG Capital was the largest bidder, with INR 376 crore.

Other bidders, mainly asset reconstruction companies , included Edelweiss, JM Financial and Pegasus. Without disclosing the number, an IOB source said over 60 per cent was recovered and this would help to strengthen the balance sheet.

The bank’s exposure to Bhushan was INR 650-700 crore. In the recent past, the bank has been in the process of reducing its high levels of non-performing assets.

In September, it sold bad debt exposure of INR 1,600 crore in Essar Steel to Edelweiss ARC at a 50% discount to the book value.

The bank’s gross NPAs at end-September were INR 34,709 crore, about 22.7% of the total, against INR 35,453 crore or 23.6% at end June.

Source :

Posted By : Rabi Wangkhem on Tue, 02 Jan 2018
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