SBI looks at over Rs40,000 crore re­cov­ery

The Gulf Today - Business - - REGION -

KOLKATA: The coun­try’s largest lender, State Bank of In­dia (SBI), is look­ing at re­cov­er­ing more than Rs 40,000 crore of its stressed as­sets in the cur­rent fis­cal, an of­fi­cial said.

“Our ex­pec­ta­tion is that we will be mak­ing a re­cov­ery of more than Rs40,000 crore in the cur­rent fi­nan­cial year. We ex­pect to get around Rs 25,000-30,000 crore from IBC (In­sol­vency and Bank­ruptcy Code) route and the bal­ance would be re­cov­ered from other sources like sale to ARCS and one time set­tle­ment,” lender’s Deputy Man­ag­ing Di­rec­tor (Stressed As­sets Res­o­lu­tion Group) Pallav Mo­ha­p­a­tra said.

Un­der IBC the lender’s ex­po­sure in the first list of stressed ac­counts as re­ferred by Re­serve Bank of In­dia was Rs 48,000 crore and for the sec­ond list, the ex­po­sure was to the tune of Rs28,000 crore, he said.

“In to­tal, our ex­po­sure for the stressed ac­counts which were re­ferred to IBC as per RBI di­rec­tion was Rs 76,000 crore,” he said.

So far, only two cases have been re­solved, he said.

“In case of Bhushan Steel, we have got Rs8,500 crore with a 30 per cent hair­cut and our claim was around Rs 11, 500 crore. For the other case, the money has been de­posited to es­crow ac­count. Once the court gives the clear­ance, it will be ad­justed,” Mo­ha­p­a­tra said.

He fur­ther said the pro­ceed from the Bhushan Steel case, would go in the write-off of pro­vi­sions and re­duc­tion of non per­form­ing as­sets.

When asked if it was a con­cern for the lender when liq­ui­da­tion were hap­pen­ing more in the cor­po­rate in­sol­vency res­o­lu­tion process, he said, since the lender made pro­vi­sions, on the bal­ance sheet front, it does “not have much of worry on that”. “We are ex­pect­ing more re­cov­ery but it is not to that ex­tent,” he added.

The lender proac­tively filed around 250 cases in Na­tional Com­pany Law Tri­bunals and the to­tal ex­po­sure would be around Rs95,000 crore, he added.

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