State Bank of India (SBI), the country’s largest lender, expects to recover about ₹30,000 crore from the resolution process under the Insolvency and Bankruptcy Code (IBC) during the current fiscal, an official said.
From the two stressed assets’ list referred for resolution under IBC by the Reserve Bank of India, the bank’s total exposure was about ₹78,000 crore, said Pallav Mohapatra, DMD (stressed assets resolution group) of SBI.
The bank had been able to recover ₹8,500 crore from the Bhushan Steel-Tata Steel deal taking a haircut of 30%. From the Electrosteel-Vedanta deal, the bank expects to recover ₹6,000 crore, he told reporters on the sidelines of a Confederation of Indian Industry (CII) event. The bank’s total NPA stood at ₹2.20 lakh crore.
One-time settlement
Besides recoveries from resolution under IBC, the bank expects to get back another ₹10,000 crore from one-time settlement, sale to ARCs and some from outside NCLT, he said.
The bank had filed 250 cases under IBC with a total exposure of ₹95,000 crore.
Mr. Mohapatra said “whatever stress is there has been recognised. We don’t expect recovery of the full amount.”
