MUMBAI: The refinancing of bankrupt companies under the Insolvency and Bankruptcy Code would probably be the biggest opportunity for refinancing of loans of up to Rs 2 lakh crore this year.
A few strong banks could scoop up the opportunity even as the state-run banks hold back and clean up their bad loans. Furthermore, the restrictions on joining the consortium will eliminate a chunk of state-run banks from exploiting the refinancing activities.
Several bidders have submitted letters of comfort from banks willing to refinance these loans. In case of Monnet Ispat, the JSWAION consortium has submitted a letter of comfort from ICICI Bank ensuring financial help to the bidder.
In case of Essar Steel, almost all potential bidde…
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