Resolution of Bhushan Steel is credit positive for banks: Moody's

Bhushan Steel is one of 12 large NPAs held by Indian banks that went to the NCLT for resolution, on an RBI order

Sale of debt-laden Bhushan Steel, one of the largest non-performing assets (NPAs) with the country's banks, is positive. It will help improve banks’ asset quality metrics and set a precedent for resolution of other NPAs in steel, Moody's Investors Service said.

On Wednesday, Tata Steel announced it had emerged as the highest bidder to acquire a controlling stake in the Neeraj Singhal-promoted company. It did not disclose the purchase price or other terms and conditions.  Media reports, however, dropped clear hints that the purchase price could result in a haircut (write-off) of around 25 per cent for