State Bank of India (SBI), the country’s largest lender, expects to recover about Rs 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( RBI), the bank’s total exposure was about Rs 78,000 crore, and whatever stress has been recognised, we don’t expect recovery of the full amount,” said Pallav Mohapatra, Deputy Managing Director (stressed assets resolution group) of SBI.
Country’s biggest financial services conglomerate, whose total non-performing asset (NPA) or bad loans currently stands at Rs 2.20 lakh crore had so far filed 250 cases under IBC with a total exposure of Rs 95,000 crore. Among its major successes to this effect in recent times, is its Rs 8,500 crore recovery from the Bhushan Steel-Tata Steel deal, taking a haircut of 30 per cent.
Going forward, besides recoveries from resolution under IBC, the bank expects to get back another Rs 10,000 crore from one-time settlement sale to asset reconstruction companies (ARCs), and some from outside National Company Law Tribunal (NCLT). From the Electrosteel-Vedanta deal, the Public lender expects to recover Rs 6,000 crore, Mohapatra added.