SBI puts its Essar Steel loan of Rs 15,431 cr on sale

The country's largest lender State Bank of India Wednesday said it has put on sale its entire exposure of Rs 15,431.44 crore to debt-ridden Essar Steel.

The lender, which is selling its exposure on a 100 per cent cash basis, has kept the reserve price of Rs 9,587.64 crore, it said in an auction notice.

The loans put on sale includes working capital loans, term loan, corporate loans, export performance bank guarantee (EPBG) and standby letter of credit (SLBC).

"The facility may be assigned in whole or in part and all the security in relation to the same will be transferred and shared pari-passu to the extent of the amount of facility assigned," the bank said.

Essar Steel's resolution plan was approved and filed in NCLT Ahmedabad.

The bank said as per approved resolution plan of ArcelorMittal India Private Ltd (AMIPL), the minimum recovery on these loans is Rs 11,313.42 crore.

The reserve price of Rs 9,587.64 crore is on the basis of net present value of minimum recovery ..