Yes Bank Recovers Rs 184 Cr Of Rs 325 Cr After Tata Steel Acquisition Of Bhushan Steel
May 24th, 2018
Image Credit: Business Standard
Yes Bank, a midsize private sector lender, recovered 66% of its original claim which was filed for 325 crores after Tata Steel acquired Bhushan Steel, The Economic Times reported.
In its statement filed in BSE, the bank said, “Yes Bank has recovered an amount of Rs 184 crore against an original claim filed for Rs 325 crore under the sale of Bhushan Steel to Tata Steel Limited under the recently concluded NCLT/Insolvency and Bankruptcy Code (IBC) proceedings.”
Furthermore, Yes Bank said that after this recovery, the bank has exposure to only one account amounting to Rs 23.4 crores as on March 31, 2018, from borrowers listed in the RBI IBC NCLT process.
Moreover, Yes Bank also said, that it had earlier recovered Rs 32 crores through the sale of pledged shares, making the total recovery against claims of 325 crores to be Rs 216 crores (66 percent).
The RBI’s internal advisory committee, formed in June last year, identified 12 accounts, each of which had more than 5,000 crores worth of loans, accounting for 25% of the total Non-Performing-Assets (NPAs) for the banks.
According to NDTV, Finance Ministry sources have said that SBI will be the biggest beneficiary of this takeover by Tatas, with profits pegged at Rs 1300 crores.
The Banks led by SBI are set to get around Rs 7500 crores, as part of the resolution plan and also equity in the company.
Bhushan Steel was acquired by Bamnipal Steel, a subsidiary of Tata Steel, buying 72.65 percent stake in the distressed company. The takeover is a first of its kind, in which a company has successfully emerged from bankruptcy and insolvency proceedings.