NPA recovery target in jeopardy on Essar Steel

NPA recovery target in jeopardy on Essar Steel

AgenciesUpdated: Wednesday, May 29, 2019, 12:26 AM IST
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New Delhi: The delay in actual realisation from the resolution of the big-ticket cases like Essar Steel has put the NPAs, or bad loans, recovery target by banks of Rs 1.8 lakh crore in jeopardy. A section of the Finance Ministry, however, believes the target of Rs 1.8 lakh crore could be deemed to have been achieved as the decision of NCLT on the sale of the Essar company to ArcelorMittal for Rs 42,000 crore was taken in the current fiscal.

A senior ministry source said the public sector banks have recovered close to Rs 1.33 lakh crore by the third week of March, leaving a gap of Rs 47,000 cr in meeting this year’s target.

The achievement of Rs 1.8 lakh cr mainly depended on the resolution of the Essar Steel insolvency case before March 31, which has happend, but the distribution of the funds to financial creditors has not taken place as operational creditors have taken up the issue of their dues in the appellate tribunal (NCLAT).

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