Subramanian said when a bank sells bad loans, it has to take a haircut because when Rs 100 goes bad, the actual amount that can be expected is lower than 100 and that leads to haircut.
RCom committee of creditors, which was to open the bid on Monday, has decided to meet again on Friday to finalise the winner.
JM Financial has acquired 4,916,104 CCDs (convertible into 49,161,040 equity shares as per the terms of issue) for cash aggregating to Rs 183.37 crore of JM Financial Asset Reconstruction Company Ltd.
The company, a manufacturer of equipment for telecom and power sector, had availed working capital credit facilities on August 12, 2009 to the tune of Rs 1,010.50 crore, the bank said.
The banking system is saddled with over Rs 10 trillion of bad loans, which is over 10.2 per cent system-wide, as of the September 2017 quarter.