Banks are expected to recover 90 per cent of their exposure to the Essar Steel account, with the State Bank of India recovering nearly Rs 12,000 crore out of its Rs 13,220 crore outstanding. Apart from SBI, Canara Bank and Punjab National Bank has large exposure of Rs 3798 crore and Rs 2936 crore, respectively to Essar Steel. Union Bank of India, Bank of India and Corporation Bank, which have exposure of Rs 2122 crore, Rs 1985 crore and 1566 crore, respectively, will also gain through recoveries. These twin developments — the Court order and government move on financial service providers — bode well for the banks battling high NPAs. While banks will recover money resolution process in large accounts, likely stress from NBFC and telecom accounts will remain a drag.

Source: Indian Express November 18, 2019 15:21 UTC