State Bank of India (SBI) is likely to put the auction of its proposed debt exposure to insolvent Essar Steel on hold. This is a sequel to the National Company Law Appellate Tribunal (NCLAT) directing on Wednesday the Ahmedabad Bench of the National Company Law Tribunal (NCLT) to pass an order on the case by January 31. Earlier, the bank was to auction the debt dues of Rs 15,431 crore on January 30.
SBI is “most likely” to decide on the auction after February 4, said one of its senior officials. The two-member NCLAT Bench said if NCLT did not decide by January 31, then they would take on the matter on February 4. So far, SBI has Expressions of Interest from around 20 companies, including Edelweiss and SC Lowy, according to the official.
From the list of financial creditors as of October 2018, SC Lowy Primary Investments had exposure of about Rs 900 crore in Essar Steel, on account of loans assigned by HDFC Bank and Axis Bank.