SBI to auction 8 bad loan accounts to recover INR 3,900 cr. - Eastern Mirror
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SBI to auction 8 bad loan accounts to recover INR 3,900 cr.

By IANS Updated: Sep 18, 2018 10:28 pm

Mumbai, Sep. 18 (IANS):  The State Bank of India (SBI) has put eight non-performing assets (NPAs), or bad loan accounts, on sale to recover over Rs 3,900 crore with the e-bidding auction process slated for later this month.

In a notification last week, SBI asked interested asset reconstruction companies (ARCs) and financial institutions to conduct the due diligence of the listed accounts which cumulatively owe the bank over Rs 3,900 crore.

Interested bidders are required to submit their expression of interest on e-bidding for these accounts which is slated to be held on September 26.

“In terms of the bank’s revised policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to ARCs/banks/NBFCs/FIs, on the terms and conditions indicated,” SBI said in the bid document posted on its website.

The bank’s NPA accounts up for sale include Rohit Ferro Tech with the highest outstanding loan of Rs 1,320.37 crore, Indian Steel Corporation (Rs 928.97 crore), Jai Balaji Industries (Rs 859.33 crore), Mahalaxmi TMT (Rs 409.78 crore) and Impex Ferro Tech (Rs 200.67 crore).

The other defaulters’ assets up for sale are Kohinoor Steel (Rs 110.17 crore), Modern India Concast (Rs 71.16 crore) and Ballarpur Industries (Rs 47.17 crore).

Of the gross NPAs worth Rs 10 lakh crore in the Indian banking system, those of the country’s largest lender alone amount to over Rs 2 lakh crore at the end of June.

SBI reported a loss of Rs 4,876 crore for the first quarter ending June on account of provisioning for NPAs.

By IANS Updated: Sep 18, 2018 10:28:55 pm