{"id":1391,"date":"2019-11-17T06:00:42","date_gmt":"2019-11-17T06:00:42","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/11\/17\/banks-win-rs-40000-crore-back-in-one-stroke-sbi-set-to-recover-this-much-from-essar-steel-ibc-punch\/"},"modified":"2019-11-17T06:00:42","modified_gmt":"2019-11-17T06:00:42","slug":"banks-win-rs-40000-crore-back-in-one-stroke-sbi-set-to-recover-this-much-from-essar-steel-ibc-punch","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/11\/17\/banks-win-rs-40000-crore-back-in-one-stroke-sbi-set-to-recover-this-much-from-essar-steel-ibc-punch\/","title":{"rendered":"Banks win Rs 40,000 crore back in one stroke; SBI set to recover this much from Essar Steel IBC punch"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1766153 size-full\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/11\/essar-steel.jpg\" alt=\"Essar Steel, IBC process,\u00a0NCLAT,\u00a0Supreme Court,\u00a0 Committee of Creditors,\u00a0Essar Steel\u00a0stakeholders\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/essar-steel.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/essar-steel-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/essar-steel-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/essar-steel-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"wp-image-1766153 size-full\" src=\"https:\/\/images.financialexpress.com\/2019\/11\/essar-steel.jpg\" alt=\"Essar Steel, IBC process,\u00a0NCLAT,\u00a0Supreme Court,\u00a0 Committee of Creditors,\u00a0Essar Steel\u00a0stakeholders\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/essar-steel.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/essar-steel-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/essar-steel-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/essar-steel-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">The Supreme Court on Friday upheld the rights of secured financial creditors and set aside NCLAT\u2019s earlier order which had put operational creditors on with financial creditors.<\/span><\/figure>\n<\/div>\n<p>The Supreme Court\u2019s landmark judgement in Essar Steel case spells a major win for banks as they stand to recover upward of Rs 40,000 crore of NPAs in a single stroke \u2014 the money which otherwise was lost in all probability. The Supreme Court on Friday upheld the rights of secured financial creditors, and set aside NCLAT\u2019s earlier order, which had put operational creditors on par with financial creditors. The Supreme Court has approved ArcelorMittal\u2019s Rs 42,000 crore bid for acquiring debt-struck Essar Steel. Following the development, Essar Steel\u2019s creditors will get their dues more than 800 days after the company was admitted to the NCLT (National Company Law Tribunal).<\/p>\n<p>Also read:\u00a0<strong><a href=\"https:\/\/www.financialexpress.com\/industry\/anil-ambani-resigns-as-director-of-reliance-communications-key-figures-from-q2-results\/1766574\/\" target=\"_blank\" rel=\"noopener noreferrer\">Anil Ambani resigns as director of Reliance Communications; key figures from Q2\u00a0results<\/a><\/strong><\/p>\n<p>Banks and financial institutions including SBI, Canara Bank, PNB, ICICI Bank and Edelweiss ARC are set to recover about Rs 22,026 crore. In all, the bankers stand to get around Rs 40,000 crore of the Rs 42,000 crore that Lakshmi Mittal-promoted ArcelorMittal will pay per the resolution plan, the Financial Express reported citing resolution professional SK Gupta. SBI alone is set to recover about Rs 12,161 crore. Notably, ArcelorMittal will invest Rs 8,000 crore in Essar Steel in addition to the payments of Rs 42,000 crore to lenders. This will make it India\u2019s fourth-largest steel producer.<\/p>\n<p>The success of Essar Steel case comes as a big boost to the government\u2019s Insolvency and Bankruptcy Code to fight the NPA menace. The Ministry of Finance had expected banks to write back more than Rs 1 lakh crore after the resolution of all 12 NPA cases referred to insolvency proceedings by the <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a> it its first list. Notably, Bhushan Steel was the largest account among RBI\u2019s 12 big accounts identified for an immediate resolution. In the last two years, banks have managed to resolve seven of those cases and recover Rs 1.13 lakh crore. The total admitted claim in the seven cases was Rs 2.13 lakh crore.<\/p>\n<p>Bhushan Steel Bhushan Power &amp; Steel, Essar Steel, Jaypee Infratech, Lanco Infratech, Monnet Ispat &amp; Energy, Jyoti Structures, Electrosteel Steels, Amtek Auto, Era Infra Engineering, Alok Industries Ltd and ABG Shipyard were the 12 large accounts referred to NCLT. These accounts together had total outstanding loan of Rs 1.75 lakh crore. In the previous fiscal year (FY19), the recovery under the IBC had been Rs 70,000 crore, twice than the figure recovered through the debt recovery tribunal, Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, and Lok Adalat in 2017-18, according to a CRISIL report.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n<div class=\"jobbi-after-content-jh-placement jobbi-entity-placement\" id=\"jobbi-2646945553\"><div id=\"jobbi-802199419\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5862940809620110\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-5862940809620110\" \ndata-ad-slot=\"\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>[ad_1] The Supreme Court on Friday upheld the rights of secured financial creditors and set aside NCLAT\u2019s earlier order which had put operational creditors on with financial creditors. The Supreme Court\u2019s landmark judgement in Essar Steel case spells a major win for banks as they stand to recover upward of Rs 40,000 crore of NPAs [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1391"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1392"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}