Tata Steel-Bhushan Steel deal: BoI to get ~20 billion
State-owned Bank of India (BoI) would be able to realise about ~19.93 bn from the first successful National Company Law Tribunal resolution concerning Tata Steel and Bhushan Steel, said D Mohapatra, managing director and chief executive officer, BoI, on Saturday. The amount would not include haircuts. The realisation of the amount would lead to NPA reduction and increase profitability of the bank, he added.
The state- owned Bank of India (BoI) would be able to realise around ~19.93 billion from the first successful NCLT resolution concerning Tata Steel and Bhushan Steel, an official said.
The amount would not include hair-cuts, BoI managing director and chief executive officer D Mohapatra said.
The realisation of the amount would lead to NPA reduction and increase profitability of the bank, he said.
“The first successful NCLT resolution involving Tata Steel and Bhushan Steel will help in realise ~19.93 billion. If there are haircuts, the amount will be written back from provisioning,” Mohapatra told reporters at a news conference in Kolkata.
In the first list of 12 accounts sent to NCLT for resolution under Insolvency and Bankruptcy Code (IBC), BoI’s exposure was ~83 billion. In the second list of 27 accounts, the exposure was ~30 billion, he said.
“Once all the resolutions are successfully completed who is expected in FY 2019, the bank will see a rise in profitability,” he added.
Under the Standby Letter of Credit (SLOC) scheme, the bank was able to recover ~90 crore and some 5 billion remains, he said.
Mohapatra said that Punjab National Bank (PNB) had returned ~25 billion to BoI which it had honoured in the Nirav Modi scam.
The bank was also in the process of rationalising the number of ATMs based on cost-benefit analysis, he said.
Retail, agri and MSME advances constituted more than 50 per cent of the total lending of the bank, Mohapatra said.