After resolution of big steel cases, banks expect low recoveries from IBC

A senior banker with a public sector bank said, not more than 30% recovery was expected from the RBI's second list

Having resolved big-ticket insolvency cases like those of Essar Steel and Bhushan Steel, bankers are now looking at a recovery rate of not more than 20-30 per cent.

Till December 2019, realisation by financial creditors under the 190 resolution plans is Rs 1.52 trillion, or 43.14 per cent, while claims worth Rs 3.51 trillion were admitted, according to the data from the Insolvency and Bankruptcy Board of India.

Of the amount realised, around Rs 1 trillion is on account of just four steel companies: Essar Steel, Bhushan Steel, Bhushan Power & Steel and Electrosteel Steels.

However, from here on out, banks are not