Just Rs 999: 1-year pack + offers

Journalism of Courage
Advertisement
Premium

Tata Steel-Bhushan Steel deal: ‘Sale to trim PSBs’ bad debts by Rs 35,000 crore’

Tata Steel, through its subsidiary, completed acquisition of a 72.65 per cent stake in Bhushan Steel last week after emerging as the winning bidder.

Substantial debt may impact company's ability to raise finance: Tata Steel Bhushan Steel owed Rs 56,080 crore to its financial creditors, which included interests as well.

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 public banks, which were earlier classified as bad debts, he said.

Tata Steel, through its subsidiary, completed acquisition of a 72.65 per cent 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 per cent 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. FE

Subscriber Only Stories
First published on: 22-05-2018 at 02:05 IST
Next Story

NCLAT refuses to stay Tata Steel’s Bhushan Steel acquisition

Home
ePaper
Next Story
close
X