Axis Bank has sold its loans to Essar Steel worth around Rs 1,000 crore to Edelweiss Asset Reconstruction Company (ARC) at a discount of 45 per cent, sources said. It is the fourth bank to sell Essar Steel loans after HDFC Bank, ICICI Bank and Federal Bank sold a total of Rs 2,220 crore loans.
Essar Steel reported gross revenues of Rs 4,482 crore in the June quarter, up 12 per cent YoY. Flat steel production in Q1FY17 was 1.22 million tonnes, up 48 per cent over the same period last year. The management hopes to increase capacity utilisation substantially by March next year, producing 80 per cent of its rated capacity. Other lenders in the 20-member consortium include State Bank of India (SBI), IDBI Bank and Punjab National Bank.
Meanwhile, last year, Axis Bank had sold its exposure to Abhijeet Group loan to an asset reconstruction company (ARC).
Last week a group of lenders to Essar Steel had decided to recast Rs 44,000-crore exposure to the firm rather than take a 50 per cent haircut by selling it to Asset Care and Reconstruction Enterprise.
Source: Indian Express
Axis Bank sells Rs 1000 cr of Essar Steel debt to Edelweiss ARC
