BoI to get Rs 1993 cr from Tata Steel-Bhushan Steel deal

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Kolkata | Published: May 19, 2018 7:39:50 PM

The state-owned Bank of India (BoI) would be able to realise around Rs 1993 crore from the first successful NCLT resolution concerning Tata Steel and Bhushan Steel, an official said.

bank of india, tata steel bhushan steel, NCLT, pnb fraud case, Nirav Modi scam, Insolvency and Bankruptcy CodeThe amount would not include hair-cuts, BoI managing director and chief executive officer D Mohapatra said. (PTI)

The state-owned Bank of India (BoI) would be able to realise around Rs 1993 crore from the first successful NCLT resolution concerning Tata Steel and Bhushan Steel, an official said. The amount would not include hair-cuts, BoI managing director and chief executive officer D Mohapatra said. The realisation of the amount would lead to NPA reduction and increase profitability of the bank, he said. “The first successful NCLT resolution involving Tata Steel and Bhushan Steel will help in realise Rs 1993 crore. If there are haircuts, the amount will be written back from provisioning,” Mohapatra told at news conference here today.

In the first list of 12 accounts sent to NCLT for resolution under Insolvency and Bankruptcy Code (IBC), BoI’s exposure was Rs 8300 crore. In the second list of 27 accounts, the exposure was Rs 3000 crore, he said. “Once all the resolutions are successfully completed who is expected in FY 2019, the bank will see a rise in profitability”, he added.

Under the Standby Letter of Credit (SLOC) scheme, the bank was able to recover Rs 9000 crore and some Rs 500 crore remains, he said. Mohapatra said that Punjab National Bank (PNB) had returned Rs 2500 crore to BoI which it had honoured in the Nirav Modi scam. The bank was also in the process of rationalising the number of ATMs based on cost-benefit analysis, he said. Retail, agri and MSME advances constituted more than 50 per cent of the total lending of the bank, Mohapatra said.

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