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Net recovery more than Rs 12,000 crore in Essar Steel case, says SBI’s Dinesh Kumar Khara

The State Bank of India's net recovery from ArcelorMittal's acquisition of debt-ridden Essar Steel is more than Rs 12,000, said Dinesh Kumar Khara, MD - global banking & subsidiaries, SBI.
ArcelorMittal repaid the promised Rs 42,000 crore to Essar Steel lenders on Friday, banking executives privy to the developments told CNBC-TV18.
The world’s biggest steelmaker transferred the sum to the current account of Essar Steel's lead banker, State Bank of India, to take over the debt-ridden company under the new Insolvency and Bankruptcy Code, the executives told CNBC-TV18, requesting anonymity, adding that all creditors’ dues will be settled by the top lender by Monday.
Terming the Essar Steel judgment a major milestone in the history of insolvency, Khara said, “We are having net recovery of more than Rs 12,000 crore in this process and since we had provided for this asset fully, 100 percent, so this will go to the profit and loss account straightaway.”
Talking about recoveries under IBC process, he said, “Since the second half is yet to close, let us see what all we get, but it’s a very promising situation as of now.”
Khara added that he was hopeful of Ruchi Soya, Bhushan Steel getting resolved in FY20.
On asset quality front, the MD said, “We expect the gross non-performing assets (NPA) to be down by 0.5-0.75 percent.”
Speaking about loan growth, Khara said, “Our retail lending is doing very well but corporate is a bit muted. As of now the trend remains the same but we have seen some activity post-September; a lot many sanctions have been done but much of it would be the availment which will happen.”
Khara expects SBI Cards to hit the market in Q4 of FY20.