SBI biggest beneficiary of Bhushan Steel sale to Tatas
New Delhi: Country's largest lender SBI will be the biggest beneficiary of resolution of debt-ridden Bhushan Steel as its bottomline will go up by as much Rs 1,300 crore.
The other banks which will get major share of the sales proceeds include Punjab National Bank (Rs 700 crore), Canara Bank (Rs 600 crore) and Bank of India (Rs 500 crore). Syndicate Bank and Oriental Bank of Commerce will get Rs 400 crore each, top finance ministry official said.
In all, the consortium of banks led by SBI would get around Rs 7,500 crore. Besides, the lenders will also get equity in the steel company.
As a result of the debt resolution, the non-performing assets (NPAs) or bad loans of SBI will come down by as much as Rs 11,000 crore.
PNB and Canara Bank will see NPA reduction of Rs 3,800 crore and Rs 2,300 crore respectively when the first quarter numbers are announced, the official said.