Bankers in a bind as SC junks JSW resolution for Bhushan

The Supreme Court's decision declaring JSW Steel's resolution plan for Bhushan Power and Steel illegal and ordering the company's liquidation has put bankers in a quandary.

- Sachin Kumar

Lenders fear they may now have to make provisions for the amount already recovered through the resolution process.

According to brokerage estimates, banks had recovered ₹16,900 crore from the resolution of Bhushan Power and Steel.

"The decision is a setback for banks. We will study the decision and try to understand its implications," said a senior bank official of a public sector bank.