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SC-Bhushan Steel case: PNB received Rs.3000 cr, lenders to meet within 2-3 days for further legal action Punjab National Bank (PNB) on Wednesday said that it received Rs.3,000 crore from JSW Steel for acquiring Bhushan Power and Steel (BSPL) and will soon sit with other lenders to decide future course of legal action. Meanwhile, the bank said that its net profit has more than doubled in the fiscal year 2024-25 and rose 52 per cent in January-March quarter. On Wednesday, its share prices closed at Rs.94.25 on BSE with a decline of 0.3 per cent. We are in touch with member lenders and we are going to have meeting in the next 2-3 days to decide on future action, Punjab National Bank MD and CEO Ashok Chandra told media after declaring quarterly numbers. As per the Supreme Court decision, BSPL has to be liquidated, which may potentially fetch lower value for the company. A group of lenders led by PNB had claimed Rs.47,204 crore as unpaid loan and following the default, lenders dragged BSPL to insolvency proceeding. JSW Steel completed the acquisition of BPSL in March 2021, making it the largest steelmaker in the country. The Sajjan Jindal-led company paid Rs.19,350 crore to the financial creditors of BPSL, which owed over Rs.47,204.51 crore to lenders. Since the apex court has quashed the acquisition, lenders will have to return the money they recovered from JSW Steel for acquiring BPSL. This may require them to make provisions starting this quarter (Q1) of 2025-26. Financial results Meanwhile, Chandra listed various reasons for over 50 per cent growth in January-March quarter and over 100 per cent growth in full fiscal. Overall business growth was over 13 per cent. Credit off take was good and so as technical recovery. Beside all these, treasury business has done very well, he said. A significant factor contributing to the profit jump was a sharp reduction in provisions for bad loans, which fell to Rs.588 crore in Q4 FY25 from Rs.1,958 crore in the year-ago period. This improvement is also reflected in the credit cost, which improved by 60 basis points y-o-y to 0.21 per cent in Q4 FY25 from 0.81 per cent in Q4 FY24. On the asset quality front, the bank's gross Non-Performing Assets (NPAs) moderated to 3.95 per cent of gross advances as compared to 5.73 per cent by the end of March 2024. Similarly, Net NPAs came down to 0.40 per cent from 0.73 per cent. The bank's board has recommended a dividend of Rs.2.90 per equity share of face value of Rs.2 each for 2024-25 subject to approval of shareholders. The board also approved a proposal to raise up to Rs.8,000 crore through issuance of Basel III-compliant Bonds (Additional Tier-I Bonds up to Rs.4,000 crore and Tier- II Bonds up to Rs.4,000 crore), to be raised in one or more tranches during 2025-26, Chandra Said. www.thehindubusinessline.com, dt. 09-05-2025

SC-Bhushan Steel case: PNB received Rs.3000 cr, lenders to meet within 2-3 days for further legal action

Punjab National Bank (PNB) on Wednesday said that it received Rs.3,000 crore from JSW Steel for acquiring Bhushan Power and Steel (BSPL) and will soon sit with other lenders to decide future course of legal action.

Meanwhile, the bank said that its net profit has more than doubled in the fiscal year 2024-25 and rose 52 per cent in January-March quarter. On Wednesday, its share prices closed at Rs.94.25 on BSE with a decline of 0.3 per cent.

We are in touch with member lenders and we are going to have meeting in the next 2-3 days to decide on future action, Punjab National Bank MD and CEO Ashok Chandra told media after declaring quarterly numbers. As per the Supreme Court decision, BSPL has to be liquidated, which may potentially fetch lower value for the company.

A group of lenders led by PNB had claimed Rs.47,204 crore as unpaid loan and following the default, lenders dragged BSPL to insolvency proceeding. JSW Steel completed the acquisition of BPSL in March 2021, making it the largest steelmaker in the country. The Sajjan Jindal-led company paid Rs.19,350 crore to the financial creditors of BPSL, which owed over Rs.47,204.51 crore to lenders. Since the apex court has quashed the acquisition, lenders will have to return the money they recovered from JSW Steel for acquiring BPSL. This may require them to make provisions starting this quarter (Q1) of 2025-26.

Financial results

Meanwhile, Chandra listed various reasons for over 50 per cent growth in January-March quarter and over 100 per cent growth in full fiscal. Overall business growth was over 13 per cent. Credit off take was good and so as technical recovery. Beside all these, treasury business has done very well, he said. A significant factor contributing to the profit jump was a sharp reduction in provisions for bad loans, which fell to Rs.588 crore in Q4 FY25 from Rs.1,958 crore in the year-ago period. This improvement is also reflected in the credit cost, which improved by 60 basis points y-o-y to 0.21 per cent in Q4 FY25 from 0.81 per cent in Q4 FY24.

On the asset quality front, the bank's gross Non-Performing Assets (NPAs) moderated to 3.95 per cent of gross advances as compared to 5.73 per cent by the end of March 2024. Similarly, Net NPAs came down to 0.40 per cent from 0.73 per cent. The bank's board has recommended a dividend of Rs.2.90 per equity share of face value of Rs.2 each for 2024-25 subject to approval of shareholders.

The board also approved a proposal to raise up to Rs.8,000 crore through issuance of Basel III-compliant Bonds (Additional Tier-I Bonds up to Rs.4,000 crore and Tier- II Bonds up to Rs.4,000 crore), to be raised in one or more tranches during 2025-26, Chandra Said.

www.thehindubusinessline.com, dt. 09-05-2025