Multiple sources told ET that banks will receive a mix of cash and non-convertible debentures of 7-year tenure. This will likely culminate in the largest recovery of stressed loans in the current financial year.
The resolution plan of Piramal Capital and Housing Finance Limited for Dewan Housing Finance was approved by the Mumbai bench of the National Company Law Tribunal in June.
Creditors led by SBI had admitted claims worth Rs 87,000 crore, of which the bank itself had exposure of Rs 7,267 crore to Dewan Housing Finance. Bank of India’s claims were worth Rs 4,125 crore while Union Bank of India had an exposure of Rs 3,605 crore.
Back-of-the-envelope calculations suggest that SBI will gain Rs 1,433 crore in recoveries.
At 1035 (IST), shares of SBI were at Rs 453.75, up 1.6% on the National Stock Exchange.
The cash portion of the deal is due to be given to banks this week and will aid them to write back certain provisions, improving the outlook for bottomlines in Jul-Sep.
