Signage for the State Bank of India Ltd. (SBI) is seen at a branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

SBI Expects Recovery Worth Rs 30,000 Crore From Resolution Under IBC

State Bank of India, the country’s largest lender, expects to recover around Rs 30,000 crore from the resolution process under the Insolvency and Bankruptcy Code during the current fiscal, an official said today.

From the two stressed assets’ list referred for resolution under IBC by the Reserve Bank of India, the bank’s total exposure was around Rs 78,000 crore, Pallav Mohapatra, deputy managing director-stressed assets resolution group of SBI, said.

The bank had been able to recover Rs 8,500 crore from the Bhushan Steel-Tata Steel deal taking a haircut of 30 percent. From the Electrosteel-Vedanta deal, the bank expects to recover Rs 6,000 crore, Mohapatra said on the sidelines of a Confederation of Indian Industry event in Delhi today. The bank’s total non-performing assets stood at Rs 2.20 lakh crore, as of March 2018.

Besides recoveries from resolution under the IBC, SBI expects to get back another Rs 10,000 crore from a one-time settlement, sale to asset reconstruction companies and some from outside the NCLT, Mohapatra said. The bank had filed 250 cases under the IBC with a total exposure of Rs 95,000 crore.

“We don’t expect recovery of the full amount from the total stress that has been identified in the bank,” Mohapatra said, adding there will be no dent on profitability of the bank as adequate provisioning had been made for haircuts which is unavoidable.

Also read: SBI Draws Out A Two-Year Road Map To Recovery