Essar Steel lender may sell loan to ARC in a bid to save debt-hit company

Lenders of Essar Steel, which has bad debts to the tune of nearly Rs 500 billion, are planning to offload some of the loans to an asset reconstruction company (ARC), as they face pressure to improve the status of their loan books before the end of the second quarter (Q2) of the current financial year (2018-19 or FY19).

Two bidders for the steel company, Numetal and ArcelorMittal India, are engaged in a prolonged court battle for the asset, prompting lenders to mull such an action.

Bankers said Essar Steel was a non-performing asset (NPA) for many quarters. Banks had made