IFCI has intensified its recovery process and expects resolution of several NPA cases worth Rs 8,000 crore during the course of the year, a top company official said.
State-owned IFCI has intensified its recovery process and expects resolution of several NPA cases worth Rs 8,000 crore during the course of the year, a top company official said.
Earlier this year, IFCI saw recovery from resolution of various loan default cases, including Bhushan Steel, Monnet Ispat, Oswal Foods, Blue Coast Hotels and Rama Industries.
“From April 1, 2018, till date, we have recovered about Rs 503 crore from the resolution or One Time Settlement (OTS) of debt. Over and above this, we have recovered approximately Rs 160 crore from the sale/buyback of unquoted equity,” IFCI Executive Director V S V Rao told PTI.
As many as seven cases were resolved through the National Company Law Tribunal (NCLT) and payment has been received in Bhushan Steel, Basai Steel & Power Limited and Monnet Ispat cases, he said.
In the remaining cases, the payments are expected by the end of third or fourth quarter except one case where liquidation has been approved by the Committee of Creditors (CoC), he said.
IFCI also sold Park Hyatt Goa, a property owned by Blue Coast Hotel, to ITC Ltd and transfer of assets would be completed during this month as per the direction of the Supreme Court. IFCI had declared ITC as the successful bidder at bid price of Rs 515.44 crore.
Giving details of the future resolution pipeline, Rao said OTS negotiation in 12 accounts is expected to bring Rs 618 crore while sale of 26 NPA accounts with principal exposure of Rs 2,230 crore will also take place.
Besides, other NPA cases with exposure of Rs 4,200 crore are at various stages of resolution through the NCLT under the Insolvency and Bankruptcy Code and Debt Recovery Tribunal.
Meanwhile, IFCI last week increased its short-term benchmark lending rate from 9.10 per cent to 9.20 per cent while benchmark lending rate for long-term loans was hiked by 0.2 per cent to 10.60 per cent with monthly rests.