Bhushan Steel resolution effect: PNB sees Rs 7.35 bn boost in profits

After the buyout, PNB and other lenders will continue to own 12 per cent in the acquired entity, giving them the opportunity to cash out later when valuation of the company goes up

Punjab National Bank (PNB), which saw the highest net loss by any bank in a quarter at Rs 134 billion during January-March, believes the insolvency resolution at Bhushan Steel will have a positive impact on profits to the tune of Rs 7.35 billion in the June quarter. 
 
Also, it hopes bad debts will fall by Rs 38.57 billion after the acquisition of Bhushan by Bamnipal Steel (BNPL), a wholly-owned subsidiary of Tata Steel. While the bank will recover Rs 30.5 billion of the dues, it will also be able to write off Rs 8.07 billion from the provision it