With two major cases at the final stage of resolution, the Finance Ministry is expecting Non-performing asset (NPA) recoveries to touch Rs 1.80 lakh crore by March 2019. Financial Services Secretary Rajiv Kumar has said that public sector banks (PSBs) have so far recovered Rs 1 lakh crore under Insolvency and Bankruptcy Code (IBC).
Lenders are expecting to recover almost Rs 52,000 crore loan in case of Essar Steel while Rs 18,000 crore from Bhushan Power & Steel. Besides, the NCLT is expected to finalise corporate insolvency resolution process of several stressed assets including Videocon Group, Monnet Ispat, Amtek Auto and Ruchi Soya. As per estimates, the IBC has helped directly and indirectly resolve stressed assets worth approximately Rs 3 lakh crore since the new law came into effect in December 2016.
Besides, he expects very positive outlook for PSBs in Q4 (January-March) of 2018-19. He also said that banks have posted a combined profit in the last quarter. He also pointed out that provisioning by and large is over and resolution in the current quarter would add recoveries.