BPSL Committee of Creditors to meet over the next few days to decide course of action on SC ruling

The Committee of Creditors (CoC) of Bhushan Power and Steel Ltd (BPSL) will meet in the next two to three days to finalise the course of action following the Supreme Court ruling on the resolution plan of JSW Steel.

“We are in touch with all CoC lenders. In another two to three days, we will have a meeting of all lenders. Then some action will be decided. Whatever is required to be done for this account and the law of land will be done,” said Ashok Chandra, Managing Director and CEO, Punjab National Bank.

The CoC for BPSL was led by State Bank of India and Punjab National Bank and included other lenders including Bank of Baroda, Indian Bank and Canara Bank. A review petition can be filed within 30 days of the Supreme Court ruling.

Addressing a press conference after the bank’s fourth quarter results on Wednesday, Chandra said that the lender had received around Rs 3,000 crore from the resolution of BPSL. “As of now, there is no question of repaying the amount,” he told reporters.

The bank has not made any provision on this front as of now although the Supreme Court had ordered liquidation of BPSL and rejected the Rs 19,700 crore resolution plan of JSW Steel. 

“Whatever the legal course is required to be done will be decided by the COC and we will arrive at the next course of action,” Chandra said.

Previously, government sources have indicated that the CoC of BPSL may file a review petition in the Supreme Court. JSW Steel could also file a review petition in the matter.

Banks in total received Rs 19,328 crore in the resolution process of BPSL. PNB’s exposure to BPSL is estimated at 0.25% of its total loan book. As per brokerage reports, State Bank of India received around Rs 3,930 crore, PNB received Rs 2,450 crore and Canara Bank around Rs 1,490 crore from the resolution process.

Punjab National Bank has reported a net profit of Rs 4,567 crore in the fourth quarter of FY25, registering a 51.7% increase over a net profit of Rs 3,010 crore in the fourth quarter of FY24. Its net interest income increased to Rs 10,757 crore in Q4 FY25 from Rs 10,363 crore in Q4 FY24.