Essar Steel.In a roaring success for Government of India's fight against bad loan menace and its landmark legislation of Insolvency and Bankruptcy Code (IBC), the global steel behemoth ArcelorMittal led by Indian-origin business tycoon LN Mittal has initiated payments of a whopping Rs 42,000 crore to Indian banks to acquire the debt-laden Essar Steel, reports Business Standard.
The payment of the entire sum is expected to be done by Monday (16 December) itself, which will provide a massive earnings boost to the public sector banks (PSBs) which have been marred with non performing assets.
The development comes after the Supreme Court in November cleared the deck for ArcelorMittal to take over Essar Steel following which the renowned steel-maker had said that it aims to complete the acquisition by the end of 2019.
Once the payment is completed, it would mark the single biggest recovery made by the Indian banks under the IBC regime, whereby they will be able to regain Rs 42,000 crore of the written-off amount of Rs 54,547 crore.
As per reports, State Bank of India will be able to write back Rs 12,161 core, Canara Bank Rs 3,493 crore, Punjab National Bank Rs 2,701 crore and ICICI Bank Rs 2,110 crore due to the payment from ArcelorMittal.
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