SBI to sell 8 bad loans to recover dues worth over ₹3,900 crore
Of the eight accounts on the block, Kolkata-based Rohit Ferro Tech has the highest loan outstanding against it at ₹1,320.37 crore, followed by Indian Steel Corporation at ₹928.97 crore
New Delhi: State Bank of India, the country’s largest lender, will sell eight non-performing assets to recover dues worth over ₹3,900 crore and has invited bids from asset reconstruction companies (ARCs) and financial institutions (FIs).
“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,” the bank said in the bid document on its website.
Of the eight accounts on the block, Kolkata-based Rohit Ferro Tech has the highest loan outstanding against it at ₹1,320.37 crore, followed by Indian Steel Corporation Ltd at ₹928.97 crore; Jai Balaji Industries at ₹859.33 crore and Mahalaxmi TMT Pvt Ltd at ₹409.78 crore.
The remaining accounts belong to Impex Ferro Tech (₹200.67 crore), Kohinoor Steel Pvt Ltd (₹110.17 crore), Modern India Concast (₹71.16 crore) and Ballarpur Industries (₹47.17 crore).
SBI has asked the interested ARCs/FIs to conduct the due diligence of these assets with immediate effect after submitting expression of interest and executing a non-disclosure agreement with the bank. The e-bidding for these accounts will take place on 26 September.
Earlier in August, the lender had put two non-performing assets (NPAs) worth ₹2,490 crore for sale to ARCs/FIs. The two accounts on sale were — Bombay Rayon Fashions Ltd which owed ₹2,260.79 crore to the bank. The second account, Shivam Dhatu Udyog Pvt Ltd, had to repay ₹229.32 crore. In April, SBI had invited bids to sell 12 sour accounts to recover dues worth ₹848.54 crore.
SBI’s gross NPAs rose to 10.69% of the total advances at the end of June this year, as against 9.97% a year ago. In value terms, they increased to ₹2,12,840 crore, from ₹1,88,068 crore.
In the first quarter ended June of the current fiscal, SBI has reported a hefty loss of ₹4,876 crore due to higher NPAs or bad loans. Banks, especially state-owned, are sitting on heavy bad loans and are adopting aggressive approach to resolve them by making recoveries through various modes.
- How do bank frauds happen? Central Vigilance Commission has the answers
- Why India lags peers in digital payments
- Paytm CEO Vijay Shekhar Sharma’s secretary arrested for blackmailing him
- IL&FS revival plan could include stake sales: Report
- Hero MotoCorp forays into 125-cc scooter segment with Destini 125
Editor's Picks »
- Real estate sector to chart new growth story, will grow 35% annually in next 5 years: Niranjan Hiranandani
- The rise of Artificial Intelligence and impending takeover
- Bitcoin struggles for survival in India after RBI clampdown
- AI policing is here: Sir, will you slowly step away from that confidential file
- ClearTax raises ₹300 crore from Composite Cap, others
- Hindustan Zinc dividend payout offsets dull Q2 results
- Q2 results no blockbuster for Inox Leisure as margins disappoint
- NBFC scare shaves 8.5% of IndusInd Bank share price
- Q2 results portent a dull Diwali for paint stocks investors
- Reliance Jio seen overtaking Vodafone Idea, Airtel to become India’s largest telecom firm by 2018-end