The acquisition of debt-ridden Bhushan Steel by Tata Steel reflects success of the insolvency and bankruptcy law which will help in cleansing the banking system as well as boost lenders' profitability, Financial Services Secretary Rajiv Kumar said today.
Bamnipal Steel Ltd (BNPL), a wholly-owned subsidiary of Tata Steel, has successfully completed the acquisition of controlling stake of 72.65 per cent in Bhushan Steel Ltd (BSL) for consideration of Rs 36,400 crore. This amount would go directly to lenders improving their bottomlines.
Tata Steel won the bid to acquire debt-laden Bhushan Steel Ltd (BSL) in an insolvency auction. The bankrupt firm was among the 12 stressed assets that the RBI had referred to the NCLT proceedings last year.
"It is a historic day as banks recover Rs 36,400 crore from sale of Bhushan Steels to Tata Steel under Insolvency and Bankruptcy Code. Banks will gain from write back. Result of silent and transformative change in credit culture," he told
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)