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IOB sells Bhushan Steel account to SSG Capital at 40% write-off

SSG Capital was the largest bidder with Rs 376 cr

T E Narasimhan  |  Chennai 

Indian Overseas Bank, IOB
Indian Overseas Bank

State-owned (IOB) has sold its Steel account with less than 40 per cent write-off (haircut is the formal term); has acquired the debt.

Sources in say the process should be complete by this weekend. was the largest bidder, with Rs 376 crore. Other bidders, mainly asset reconstruction companies (ARCs), included Edelweiss, JM Financial and Without disclosing the number, an source said over 60 per cent was recovered and this would help to strengthen the balance sheet. The bank’s exposure to was Rs 650-700 crore.

In the recent past, the bank has been in the process of reducing its high levels of In September, it sold bad debt exposure of Rs 1,600 crore in Essar Steel to ARC at a 50 per cent discount to the book value. The bank’s gross at end-September were Rs 34,709 crore, about 22.7 per cent of the total, against Rs 35,453 crore or 23.6 per cent at end-June.

First Published: Sat, December 30 2017. 01:07 IST