Deutsche Bank’s Singapore branch has informed the CoC and the RP of Essar Steel that it has not received any dues from Uttam Galva Steels and the account is still a non-performing asset (NPA) in its books despite a Supreme Court order. In a letter dated October 23, Deutsche Bank said RBI guidelines are clear about the sale of NPAs and they can sell it to other banks or NBFCs only.
“Under the RBI guidelines, there are specific conditions on which the NPAs can be taken off the books of the seller and be classified as standard by the buyer. To our knowledge,
AM India (a subsidiary of ArcelorMittal) is not a bank, financial institution or NBFC. Therefore, under the RBI guidelines, it will not be permitted to buy any NPA,” the letter stated. An email send to ArcelorMittal did not elicit any response.