Banks to add Rs 770 cr to their Q4 bottomline with JSL exit from CDR

Earlier this month, JSL announced its exit from CDR framework. The company received a letter from the consortium of CDR lenders to this effect on March 4.

A consortium of banks led by State Bank of India (SBI) will add about Rs 770 crore to their bottomlines during the fourth quarter following the exit of Jindal Stainless Ltd (JSL) from the corporate debt restructuring (CDR) framework. However, this is considered difficult due to outbreak of coronavirus. 

SBI, the lead banker, will get Rs 300 crore from the resolution of this account, while Punjab National Bank (PNB) will write back about Rs 100 crore from this, sources told PTI. Other lenders like Bank of Baroda and Canara Bank too will be able to show cash recovery from this