In May 2008, Neeraj Singal, managing director of Bhushan Steel Ltd, threw a birthday party. But the dramatic rise and fall of Bhushan Steel reveals the NPA crisis is equally about public sector banks backing risky bets of promoters accustomed to growing their businesses on borrowed money. In the on-going court case of Bhushan Steel and Syndicate Bank, the Central Bureau of Investigation alleges in a First Information Report (No. House of CardsFor Bhushan Steel, it was a gust of headwind. When Bhushan Steel was on the brink of default in March 2014, SBI and a consortium of lenders sanctioned fresh loans.

Source: Hindustan Times August 08, 2017 02:03 UTC