Challenges of Consortium Lending-The Case of Bhushan Steel

Code :FCF0024

Year :
2014 - 2015

Industry : Steel and Banking industry

Region : India

Teaching Note:Available

Structured Assignment :Not Available

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Abstract: The case deals with the difficulties faced by a consortium of banks in arriving at a consensus on dealing with bad loans. Citing the example of Bhushan Steel Limited that availed finance to the tune of Rs.400 billion from 51 lenders, the cases highlights the issues and challenges associated with joint lending. The substantive focus of the case is how a large group of lenders with divergent views, came together and dealt with the problem loans of crisis ridden Bhusan Steel Limited


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Pedagogical Objectives:

  • To understand the nuances of consortium finance.
  • To compare consortium lending with other types of credit delivery arrangements from banks.
  • To discuss the issues and challenges faced by the participating banks in jointly financing Bhushan Steel limited.


    Keywords :Banking, Consortium, NPA (Non-performing loan), CDR (Corporate Debt Restructuring), SDR (Strategic Debt Restructuring), Rating, Debt, Loan, Restructuring, Bhusan Steel, Syndicate bank, PNB (Punjab National bank), SBI (State bank of India)

    Contents :
    » INTRODUCTION
    » BHUSHAN STEEL LIMITED
    » FINANCIAL PERFORMANCE
    » ISSUES AND CHALLENGES FOR THE BANKING CONSORTIUM
    » LOOKING AHEAD
    » WHAT HAPPENED?
    » EXHIBITS


    Case Introduction >>


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