New Delhi: State-owned State Bank of India (SBI), United Bank of India (UBI) and long-term infrastructure lender IFCI are looking for buyers to sell as many as 110 accounts that have turned dud to recover dues over Rs16,349 crore.
All the three have invited bids today from eligible banks, financial institutions, asset reconstruction companies (ARCs) and non-banking financial companies (NBFCs) to prune such non-performing assets (NPAs) from their respective balance sheets. SBI plans to sell a total of 15 such NPA accounts to recover Rs988.95 crore, including the country’s largest sweetener manufacturer Simbhaoli Sugars that has an outstanding of Rs158.57 crore to the bank.
SBI has asked the bidders to submit expression of interest by 9 March 2018 and further to complete the due diligence by 22 March. Delhi-based IFCI Ltd has expressed interest to sell a total of 23 NPA accounts for recovery of Rs13,667.50 crore and while Kolkata-headquartered United Bank of India has put up for sale 72 bad assets with combined dues of Rs1,692.78 crore.
“SBI invites expression of interest from banks/asset reconstruction companies/NBFCs/FIs for the proposed sale of 15 non-performing assets (NPAs) with principal outstanding of ₹ 988.95 crore," reads the SBI bid document published on Wednesday.
Among other NPA accounts for whom SBI is scouting for buyers include Aksha Gold Ornaments, KBJ Jewels Industry India and KBJ Hotel Varanasi with a combined outstanding of Rs164.30 crore. Shri Jalaram Rice Industries owes Rs127.05 crore, while MCL Global Steel has loan outstanding loan of Rs100.18 crore which the bank has failed to recover.
Eight companies based in Gujarat availed loans in the range of Rs5.90-63.39 crore from SBI that have become NPA on the bank’s balance sheet. Continental Float Glass with dues of Rs5,730.51 crore, Synthetics & Chemicals Ltd Rs2,004.34 crore, Sanghi Polyesters Rs1,964.38 crore, Kumar’s Mettallurgical Corporation Rs1,339 crore, Electrex India Rs670.15 crore are among the major NPA borrowers, whose account IFCI has put up for sale, showed the bid document.
Among others Bakeman’s Industries has an outstanding of Rs148.63 crore on IFCI, Lavasa Corporation Rs183.82 crore, Malwa Cotton Spg Mills Co. Ltd Rs171.81 crore, IVRCL Indore Gujarat Tollways Rs251.26 crore and IVRCL Chengapalli Leisures Rs233.47 crore and Jindal India Powertech Ltd Rs277.90 crore.
IFCI will open the bids on 26 March while the declaration of successful bidders will be announced subsequently. United Bank of India (UBI) said it proposes to sell 72 non-performing accounts having an outstanding of about Rs1,692.78 crore.
“The non-performing loans (NPLs) offered for sale will consist of sale of individual/multiple and /or consortium corporate loans and their related security interest, accrued interest, guarantee and fee and other associated rights and privileges," United Bank of India said and the bid will close on 29 March.
Hapur (Uttar Pradesh) based Simbhaoli Sugars, also has become an NPA for another state owned lender Oriental Bank of Commerce with outstanding of Rs97.85 crore in an alleged fraud case. Oriental Bank of Commerce has already filed a case with CBI against the sugar manufacturer and the investigation is on into the matter.
Public sector banks are under stress to recover their bad loans and they sat on bad loans of Rs7.34 trillion at the end of second quarter ended September of the current fiscal, a bulk of which came from corporate defaulters.