New Delhi: Recovery of 66 per cent of the original claim filed for Rs 325 crore after the sale of Bhushan Steel to Tata Steel under the insolvency resolution process have been recovered by Yes Bank.
The private lender, in a BSE filing, said that Yes Bank has recovered an amount of Rs 184 crore against an original claim filed for Rs 325 crore pursuant to the sale of Bhushan Steel of Tata Steel Limited under the recently concluded NCLT/Insolvency and Bankruptcy Code (IBC) proceedings.
“With this recovery, bank now has an exposure to only one account, aggregating to only Rs. 23.4 crore (with 50 per cent provision) as on March 31, 2018, from the borrowers referenced in the first list of the RBI IBC NCLT process,” Yes Bank said in its filing.
The statement filed further read that earlier the bank had recovered Rs 32 crore through sale of pledged shares. As of now the total recoveries against the claim of Rs 325 crore is Rs 216 crore which is 66 per cent of the total recovery.
The bank informed that the write back of provisions consequent to the above recoveries were Rs 36 crore.
Notably, Reserve Bank of India’s Internal Advisory Committee (IAC) identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of the bank in June 2017.
It should also be noted that Tata Steel Limited had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction in March 2018. Though recently, Neeraj Singhal, promoter of Bhushan Steel challenged the sale as well as the eligibility of Tata Steel as resolution applicant under Section 29A of the Insolvency and Bankruptcy Code. In the response to Singhal’s petition, NCLAT issued a notice to Tata Steel but refused to stay the acquisition of Bhushan Steel.