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VTB Bank's Andrey Kostin says committed to bid for Essar Steel

Updated : October 05, 2018 07:51 PM IST

The lead shareholder in the Numetal consortium, Russia's VTB Bank, on Friday said it's very much committed to bid for bankrupt Essar Steel.

On October 4, the Supreme Court granted one more opportunity to ArcelorMittal and NuMetal to bid for Essar Steel, provided the two pay off the non-performing assets (NPAs) of their related corporate debtors within two weeks.

In an exclusive interview to CNBC-TV18, Andrey L. Kostin, president and chairman, said it's too early to talk about the bid, since the bank is still studying the Supreme Court order.

Kostin said Russia's second-largest bank will take the decision with regard to Essar Steel bid in two weeks time.

According to Kostin, bank believed that Essar Steel is a very good company, even though it has made some mistakes and has too much debt, "However, if the issues get resolved, then it could become a leading metal producer not only in India but even in the world."

Talking about the announcement of credit to West Bengal-based petrochemical company, Kostin said VTB Bank has good experience of financing to Indian companies and they are working with number of leading industrial groups.

"We are also providing advice on international transactions within India as an investment bank,” Kostin said, adding that VTB Bank would be looking at oil refinery, steel, energy, petrochemical, fertiliser and other sectors for investment.

Asked on other distressed assets in India, he said VTB Bank does not mind looking at them as they have experience of dealing with this kind of assets in Russia.
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