Banking wrap: Lenders cheer SC ruling in Essar Steel case; Indian banks add bad loans of Rs 1 lakh cr in H1FY20

After a long wait, lenders to Essar Steel heaved a sigh of relief as the Supreme Court of India (SC) ruled in their favour, giving the Committee of Creditors an upper hand over distribution of settlement claims. The landmark ruling paves way for other cases as well.

Essar Steel’s lenders, who have been counting on recovery of dues from the troubled company for the last several quarters, can finally breathe easy as the apex court ruled in the favour of Committee of Creditors (CoC) in a landmark judgement on November 15.

The top ten lenders reported slippages of over Rs 1 lakh crore in the first half of the current financial year, indicating that the worst is not over yet in terms of stress in asset quality.

Union Bank of India (UBI), on November 14, said that loan growth is likely to pick up in the second half though it has pared its year-end target to 7-9 percent from 9-11 percent as set earlier.