Public sector banks (PSBs) have recovered close to Rs 1.2 lakh crore from stressed assets during the financial ended March, primarily helped by resolution under the Insolvency and Bankruptcy Code (IBC), an official said.
During the first half of the previous fiscal, banks recovered Rs 60,713 crore from bad loans. “Due to non-resolution of some big accounts referred under NCLT (National Company Law Tribunal), PSBs could not achieve the resolution target of Rs 1.80 lakh crore. But, these accounts should be resolved in the current financial year,” the official said.
Banks recovered close to Rs 55,000 crore from the NCLT resolution, the official said. “Compared to Rs 74,562 crore in 2017-18, the recovery in the previous financial year nearly doubled to Rs 1.2 lakh crore,” the official said.
Two large accounts of Essar Steel and Bhushan Power & Steel Ltd are still pending to be resolved. It is expected that these two accounts should be resolved in the next few months and recoveries from these could be around Rs 50,000 crore.
JSW Steel had revised its offer from Rs 11,000 crore to Rs 18,000 crore and later to over Rs 19,000 crore, whereas Tata Steel’s last offer was at Rs 17,000 crore after it had refused to revise its bid. ArcelorMittal has made a bid of Rs 42,000 crore for Essar Steel.
According to the official, consolidation among public sector banks and higher recoveries by state-owned lenders will be on the government’s agenda in the current financial year.