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FinMin expects bad loan recoveries to touch Rs 1.80 trillion in FY19

Lenders are expecting to recover almost Rs 52,000 crore loan in case of Essar Steel while Rs 18,000 crore from Bhushan Power & Steel Ltd

Press Trust of India  |  New Delhi 

NPA

With two major cases at the final stage of resolution, the Ministry expects bad loan recoveries to touch Rs 1.80 trillion during the current fiscal.

So far, have recovered Rs 1 trillion under the Code (IBC). The recovery is expected to touch Rs 1.80 trillion by March 2019 with some of the resolutions at the final stage, Financial Services Secretary said.

Lenders are expecting to recover almost Rs 52,000 crore loan in case of while Rs 18,000 crore from Bhushan Power & Steel Ltd.

Besides, the NCLT is expected to finalise corporate insolvency resolution process of several stressed assets including Videocon Group, Monnet Ispat, Amtek Auto and

According to estimates, the IBC has helped address stressed assets worth approximately Rs 3 trillion -- directly or indirectly -- since the new law came into force in December 2016.

In 2018, insolvency proceedings against some companies including Bhushan Steel, ElectroSteel Steel, were almost completed and the new management from their successful bidders -- Tata Steel, and Adity Birla-led UltraTech, respectively -- have taken over the management control of the stressed assets.

When asked about his outlook for public sector in the current January-March quarter, Kumar said it is very positive.

have posted a combined profit in the last quarter, he said, adding, provisioning by and large is over and resolution in the current quarter would add recoveries.

In June 2017, RBI's internal advisory committee (IAC) identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total non-performing assets (NPAs) of banks.

Following the RBI's advisory, banks referred Ltd, Bhushan Power & Steel Ltd, Ltd, Jaypee Infratech Ltd, Ltd, Monnet Ispat & Energy Ltd, Jyoti Structures Ltd, Electrosteel Steels Ltd, Amtek Auto Ltd, Era Infra Engineering Ltd, Alok Industries Ltd.

First Published: Wed, February 20 2019. 19:55 IST
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