SBI Moves Closer To Recover Dues Through Insolvency Resolution. Five Things To Know
1. The bank had been able to recover Rs 8,500 crore from the Bhushan Steel-Tata Steel deal taking a haircut of 30 percent. From the Electrosteel-Vedanta deal, the bank expects to recover Rs 6,000 crore, he told reporters on the sidelines of a Confederation of Indian Industry (CII) event here today.
2. State Bank of India's total NPA (non performing assets) stood at Rs 2.20 lakh crore. Besides recoveries from resolution under IBC, the bank expects to recover another Rs 10,000 crore from one-time settlement, sale to asset reconstruction companies (ARCs) and some from outside NCLT, he said.
4. Out of Rs 11,500 crore, SBI has managed to recover Rs 8,500 crore with nearly 30 per cent haircut. "In case of Bhushan Steel, we have got Rs 8,500 crore with a 30 per cent haircut and our claim was around Rs 11, 500 crore. For the other case, the money has been deposited to escrow account. Once the court gives the clearance, it will be adjusted," Mohapatra said.
5. The bank official says that there will be no dent on profitability of the bank as adequate provisioning had been made for haircuts, which is unavoidable. He further said the proceeds from the Bhushan Steel case, would go in the write-off of provisions and reduction of non-performing assets. (With PTI inputs)