Punjab National Bank (PNB) will get clarity on the JSW-Bhushan development loan account in the next three days, Ashok Chandra, Managing Director and Chief Executive Officer, PNB per a report by Moneycontrol. He said that the committee of creditors (CoC) led by PNB in Bhushan Power and Steel Ltd (BPSL) will meet other lenders having exposure to the account in the next two to three days.
During the post earnings call, he said that the Bank is in touch with all the other members of the CoC and will take necessary decisions on the verdict by the Supreme Court after the meeting. He also mentioned that the Bank has received Rs 3,000 crore from the JSW Steel after the resolution.
On May 2, the Supreme Court had nullified JSW Steel’s Rs 19,350 crore acquisition of BPSL and directed that the company be liquidated. This was pursued by BPSL’s operational creditors, who challenged the approval of the resolution plan. They maintained that their claims were unfairly treated and key procedural lapses had gone unaddressed.
The ruling highlighted procedural and legal lapses under the Insolvency and Bankruptcy Code (IBC), as the Supreme Court raised questions around missed timelines, inconsistent creditor oversight, and the role of promoter-linked structures in resolution plans that were allowed to proceed despite non-compliance on several fronts.
Another report by Moneycontrol on May 5 had stated that the government and committee of creditors (CoC) are working on likely legal remedies available.
On May 7, PNB had released its fiscal fourth quarter earnings report with a 52 per cent increase in net profit at Rs 4,567 crore. The Bank had earned a net profit of Rs 3,010 crore in the year-ago period. Further, interest income grew to Rs 31,989 crore from Rs 28,113 crore in the fourth quarter of previous financial year.