Bank haircuts on NPAs go up to 80%; 9 of 12 firms enter bidding stage

The least loss is likely to be in case of Bhushan Steel, for which JSW Steel has offered Rs 280 bn of cash and equity worth Rs 17 bn to banks

As nine of the 12 companies on the Reserve Bank of India’s (RBI’s) first list of non-performing assets (NPAs) enter the bidding stage, the average haircut on bad loans, or loss to banks based on the offers made by suitors in five cases, ranges between 50 per cent and 80 per cent.
 
The least loss is likely to be in the case of Bhushan Steel, for which JSW Steel has offered Rs 280 billion of cash and equity worth Rs 17 billion to banks. Bhushan Steel owes banks Rs 560 billion.
 
The steepest haircut, however, is due to