New Delhi: Bad loans are the biggest problem for the banks, especially state-run banks, and in order to make recoveries they are working on various modes. The largest bank of the country, State Bank of India, has also planned to sell eight non-performing assets (NPAs) to recover dues worth Rs 3,900 crore.
SBI has invited bids from the asset reconstruction companies (ARCs) and financial institutions (FIs) regarding the same.
The bid document on the website of the bank read, “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.”
Rohit Ferro Tech based out in Kolkata owes the highest loan outstanding worth Rs 1,320.37 crore. Kolkata based company is followed by Indian Steel Corporation with outstanding worth Rs 929.97 crore, Jai Balaji Industries with outstanding worth Rs 859.33 crore and Mahalaxmi TMT Pvt Ltd with outstanding worth Rs 409.78 crore.
Apart from these four, the other four NPAs which the largest lender of the country plans to sell are Impex Ferro Tech worth Rs 200.67 crore, Kohinoor Steel Pvt Ltd worth Rs 110.17 crore, Modern India Concast worth Rs 71.16 crore and Ballarpur Industries worth Rs 47.17 crore.
The ARCs and FIs have been asked to immediately conduct the due diligence in this regard and submit the expression of interest and execute a non-disclosure agreement with the bank. The bank has decided to conduct the e-bidding of all these eight NPAs on September 26.
Notably, two other NPAs (Bombay Rayon Fashions Ltd and Shivam Dhatu Udyog Pvt Ltd), worth Rs 2,490 crore, were put on sale to ARCs and FIs by the lender in August. Bombay Rayon Fashions Ltd owed Rs 2,260.79 crore whereas Shivam Dhatu Udyog Pvt Ltd owed Rs 229.32 crore.
In April too, bids were invited by the State Bank of India to sell 12 NPAs worth Rs 848.54 crore.
There has been an increase in the gross NPA of SBI by 10.69 per cent of the total advances at the end of June in 2018 which increased to Rs 2,12840 crore in terms of value. Last year it was 9.97 per cent at Rs 1,88,068 crore.
Huge loss of Rs 4,876 due to NPAs was reported by the SBI in the first quarter ended June of the current fiscal.
