New Delhi: Several banks that loaned money to Bhushan Steel Ltd have classified their loans as bad, or as a non-performing asset (NPA) in January-March quarter.

According to the reports, the corporation has a debt burden of more than Rs 40,000 crore.

Financial institutes have been struggling with the account since August 2014 when they first formed a joint lenders forum (JLF) to monitor the company.

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After working on a number of options, including refinancing debt under 5/25 scheme, banks have finally decided to classify the loan as NPA, said the reports.

The 5/25 scheme allows banks to extend long-term loans of 20-25 years to match the cash flow of projects, while refinancing them every 5 or 7 years.

The company said it is yet to receive any communication from the lenders regarding an NPA classification.

Bhushan Steel has already sold its oxygen plant in Odisha for Rs 1,000 crore and leased it back to reduce its debt.