By Vishwanath Nair
Over the past week, two public sector banks have disclosed an intention to sell some of their loans to companies which are undergoing insolvency proceedings. Their decision to exit the insolvency process mid-way has raised questions and conspiracy theories but experts say that banks may be simply doing what is best for them commercially. Among the banks that has chosen this route is the countrys largest lenders.
Among the banks that has chosen this route is the countrys largest lender. State Bank of India (SBI), on January 16, said that it has put its entire loan exposure in Essar Steel Ltd worth Rs 15,431 crore on the block for sale to asset reconstruction companies (ARCs), non-banking finance companies (NBFCs), banks and other financial institutions. On Monday, BloombergQuint reported that Central Ban
The article was published in Bloomberg Quint.