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  1. Bhushan Steel sale to trim PSBs’ bad debts by Rs 35,000 crore: Financial services secretary Rajeev Kumar

Bhushan Steel sale to trim PSBs’ bad debts by Rs 35,000 crore: Financial services secretary Rajeev Kumar

Tata Steel's acquisition of debt-trapped Bhushan Steel – the biggest so far under the Insolvency and Bankruptcy Code (IBC) framework – will cut non-performing assets (NPAs) of public-sector banks (PSBs) by about Rs 35,000 crore, financial services secretary Rajeev Kumar said.

By: | New Delhi | Published: May 22, 2018 5:07 AM
tata steel, bhushan steel rajeev kumar Rajeev Kumar (ANI)

Tata Steel’s acquisition of debt-trapped Bhushan Steel – the biggest so far under the Insolvency and Bankruptcy Code (IBC) framework – will cut non-performing assets (NPAs) of public-sector banks (PSBs) by about Rs 35,000 crore, financial services secretary Rajeev Kumar said on Monday.

“Reduction of NPAs in individual PSBs ranges from about Rs 500 crore to over Rs 10,000 crore,” Kumar said in a tweet. The acquisition will result in a write-back of Rs 7,500 crore of loans by state-run banks, which were earlier classified as bad debts, he said.

Tata Steel, through its subsidiary, completed acquisition of a 72.65% stake in Bhushan Steel last week after emerging as the winning bidder. Interim finance minister Piyush Goyal had then tweeted that “lenders recovered almost entire principal loan of Bhushan Steel through Rs 36,400 crore transparent bid by Tata Steel and also got 12% stake in the company” and that the acquisition was a “historic breakthrough in resolving legacy issues of banks”. The troubled firm owed Rs 56,080 crore to its financial creditors, which included interests as well.

“Future upside through over 6 crore equity shares acquired by PSBs. Decisive shift towards clean credit culture,” Kumar tweeted on Monday.

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