MUMBAI: Banks led by State Bank of India will decide on Thursday the fate of three large defaulters Essar Steel, Bhushan Steel and Electrosteel Steels which constitute nearly half the loans of the top 12 defaulters identified by the Reserve Bank of India, thus marking a significant phase in the effort of lenders to clean up bad loans. These three borrowers have to repay loans worth over Rs 1 lakh crore, as the 12 accounts constitute 25%, or Rs 2.5 lakh crore, of the total bad loans in the banking system
The lenders and borrowers will meet on Thursday to discuss the possibility of the losses that banks would have to incur in reorganising these loans, and the amount of equity that promoters will have to bring in, said two bankers who …
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