You are here: Home » Economy & Policy » News
Business Standard

Iron, steel cos' GNPA for PSBs in basic metals 24%: Govt

The Indian steel industry contributes approximately 2 per cent to the country's GDP

Iron And Steel Sector  |  Gdp  |  Nclt

Press Trust of India  |  New Delhi 

gas supply

accounts for about 24 per cent of total gross non-performing assets (GNPA) in basic metal and metal product category for public sector banks (PSBs), according to the Ministry of Steel.

"The share of gross non-performing assets (GNPA) for iron and steel in basic metal and metal product category as on September 30, 2017 is 23.70 per cent for public sector banks," the Minsitry of Steel said in a statement.

As per the National Steel Policy, 2017, the Indian steel industry contributes approximately 2 per cent to the country's Gross Domestic Product (GDP).

The benefit of RBI schemes namely 5/25 Scheme and Scheme for Sustainable Structuring of Stressed Assets (S4A) for restructuring of debts of stressed companies can be availed by steel companies.

Public sector banks have been reeling under high non- performing assets (NPAs). Their NPAs have increased more than two-and-a-half times to Rs 7.33 lakh crore as of June 2017, from Rs 2.75 lakh crore in March 2015..

The RBI's internal advisory committee had identified 12 large stressed cases worth over Rs 5,000 crore, accounting to 25 per cent (Rs 1.75 lakh crore) of total gross non-performing assets, for proceedings under the insolvency and bankruptcy code.

The RBI in its second list of big defaulters released in August had asked banks to resolve 28 large accounts till December 13 or report them by December 31 to for insolvency proceedings. Of these, banks are set to refer as many as 23 accounts for insolvency proceedings.

These 28 accounts together account for 40 per cent of bad loans or around Rs 4 lakh crore.

Some of the large accounts which are likely to go to the include Uttam Galva Metallic, Uttam Galva Steel, Visa Steel and Essar Projects, among others.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 02 2018. 00:14 IST