Banks to recover 48% from NPA accounts in RBI list: Edelweiss Securities

In the case of ABG Shipyard, too, says Edelweiss, the recovery of dues has been more than expected

Banks in India will recover only 48 per cent of their debts from the top accounts that have turned into non-performing assets (NPAs), according to a research report by Edelweiss Securities.

The haircut for major banks stands at 52 per cent, if the dues of Jaypee Infrastructure, Lanco Infrastructure and Era Infrastructure are kept out of the calculation. This is down from the initial expectations of a 60 per cent haircut for the stressed accounts under insolvency proceedings.

There has been a greater than expected recovery from the insolvency and debt resolution of Bhushan Steel and Bhushan Power and Steel,