Siva Industries case: Banks to settle bad loans worth Rs 4863 crore for just Rs 323 crore

All the members of the Committee of Creditors (CoC) are yet to grant their blessings to the out of court settlement. SBI is standing against the settlement proposal which is all set to result in a loss of approximately Rs 4,700 crore in public money.

New Delhi: Public sector banks have agreed to settle bad loans worth Rs 4,863 crore at just Rs 323 crores in the Siva Industries and Holdings case. With the recovery rate standing at just 6.5%, many are raising serious questions regarding how banks are making their way out of the disaster.  However, all the members of the Committee of Creditors (CoC) are yet to grant their blessings to the out of court settlement that is facing criticism for allegedly eloping the rules under the Bankruptcy Act.  For instance, India’s largest state-owned bank and a CoC member, SBI, is standing against the settlement proposal which is all set to result in a loss of approximately Rs 4,700 crore in public money.