IOB sells Bhushan Steel account to SSG Capital at 40% write-off

State-owned Indian Overseas Bank (IOB) has sold its Bhushan Steel account with less than 40 per cent write-off (haircut is the formal term); SSG Capital has acquired the debt. 

Sources in IOB say the process should be complete by this weekend. SSG Capital was the largest bidder, with Rs 376 crore. 

Other bidders, mainly asset reconstruction companies (ARCs), included Edelweiss, JM Financial and Pegasus. Without disclosing the number, an IOB source said over 60 per cent was recovered and this would help to strengthen the balance sheet. 

The bank’s exposure to Bhushan was Rs 650-700 crore. In the recent past, the bank has