Business Standard

Three shipyards account for bulk of Rs 44,000 cr banks lost to the industry

ABG Shipyard was biggest contributor, at Rs 23,000 cr, to the drain on banks' coffers

ABG Shipyard has been unable to deliver orders because of lack of working capital

Dev Chatterjee Mumbai
Indian banks have lost around Rs 44,000 crore in the Indian shipyard industry with three large companies, and ABG Shipyard accounted for most of those losses.

Bankers said while their exposure to ABG Shipyard was Rs 23,000 crore, the banks have lost around Rs 12,500 crore in Reliance Naval & Engineering, earlier known as Pipavav Shipyard, and another Rs 8,500 crore in Bharati Shipyard

“Despite a series of debt restructurings, these companies failed to return back to profitability. Later, the banks took several steps to recover the loans, including enforcing the Insolvency and Bankruptcy Code, but it did not help recover the

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First Published: Feb 17 2022 | 8:21 PM IST

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