SBI puts up 11 NPA accounts for sale to recover Rs1,019 crore dues1 min read . Updated: 04 Nov 2018, 05:05 PM IST
SBI says the e-auction of these NPA accounts will take place on 22 November
New Delhi: SBI has put up 11 non-performing assets (NPAs) for sale to ARCs and financial companies to recover dues of nearly Rs1,019 crore. The country’s largest lender said the e-auction of these NPA accounts will take place on 22 November.
“In terms of the bank’s policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to ARCs/ Banks/ NBFCs/ FIs," SBI said in an auction notice on its website.
Of these 11 accounts, Janki Corp Ltd has the highest outstanding dues of Rs592.53 crore.
Among others, Venus Remedies Ltd has to repay Rs83.01 crore, SBS Transpole Logistics Pvt Ltd Rs63.36 crore, R S Luth Education Trust Rs60.62 crore, Nilachal Iron & Power Ltd Rs52.41 crore and Sri Balmukund Polyplast Rs50.12 crore. The rest of the five companies owe the bank the remaining Rs117 crore.
The interested asset reconstruction companies (ARCs)/ banks/ non-banking financial companies (NBFCs)/ financial institutions (FIs) can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a Non-Disclosure Agreement (NDA) with the bank, State Bank of India (SBI) said.
Once the deal is finalised, the assignment deed and other legal formalities will be completed in the shortest possible time as mutually agreed upon, it added.
SBI’s gross NPAs rose to 10.69% of the total advances at the end of the first quarter ended June this fiscal year, as against 9.97% a year ago. In value terms, they increased to Rs2,12,840 crore, from Rs1,88,068 crore.
SBI has reported a hefty loss of Rs4,876 crore for the June quarter due to higher NPAs or bad loans.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)