The ‘resolution’ process has got a major boost after three top lenders—ICICI Bank, Axis Bank and StanChart—got back an estimated $2.5 billion last Friday as part of the first payment for their debt exposure to the Ruia-led Essar Group. Photo: BloombergNew Delhi: Enthused by speedy recovery of loans worth $2.5 billion by three lenders including ICICI Bank within days of mega $13-billion Essar deal, banks are now looking at resolution of stressed assets totalling Rs1.25-1.50 lakh crore (nearly $20 billion) in coming months. Having broadly completed the first two stages of ‘recognising’ the stressed assets and of ‘reserving’ or provisioning for such loans in their accounts, the banks are now betting big on ‘resolution’ part of what is being billed by some top bankers as ‘3Rs’ formula to recover their dues. Among foreign companies, those from Russia, Canada and Gulf countries are expected to buyout assets in a big way, while a few domestic conglomerates are also looking at strategic buyouts of assets from debt-ridden groups. ICICI Bank’s share in the total payout is three-fourth, while the remainder is of Axis.

Source: Mint October 23, 2016 12:52 UTC