Next are these 3 large defaulters who are on banks’ list. They make up nearly half the loans of 12 defaulters identified by RBI

Banks are now gearing up to go after three defaulters-Essar Steel, Bhushan Steel and Electrosteel Steels-who have to repay loans amounting more than Rs 1 lakh crore.

Lenders led by the State Bank of India (SBI) will decide their fate as these three make up around half the loans of the top 12 defaulters identified by the Reserve Bank of India.

SBI, which is the lead bank for all the three steel companies, has called a meeting of the joint lenders forum (JLF).

"The fate of the three large steel companies will be sealed soon. Lenders will seek mandate from the consortium to file for corporate insolvency,” a senior SBI official told ET.

ET reported banks have outstanding loans worth Rs 45,000 crore to Essar Steel, Rs 47,000 crore to Bhushan Steel, and Rs 11,000 crore to Electrosteel Steels.

Banks are meeting to come up with a solution to take stringent action against these defaulters.