Bhushan Steel lenders to restructure loans

State Bank of India, Punjab National Bank are the lead lenders who will implement RBI’s S4A norms on the firm’s Rs45,000 crore bad loans

“While academically speaking, reducing unsustainable debt from the book of the company is a possible solution, banks must remember that this also dilutes the promoter’s equity in the company. There needs to be some incentive for the promoter to turn the company around; otherwise lenders will be left holding the risk in the company for a long time,” said Nirmal Gangwal, managing director, Brescon Corporate Advisors, a corporate restructuring and turnaround firm.