Allahabad Bank puts Rs 711-crore NPAs on sale

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Mumbai | Published: August 18, 2018 1:11:46 AM

Kolkata-headquartered Allahabad Bank on Friday put on sale non-performing assets (NPAs) worth Rs 711 crore, including a Rs 165-crore exposure to the Patni group-owned Rohit Ferro-Tech, whose debt stood at Rs 2,889 crore at the end of March 2017.

Allahabad Bank puts Rs 711-crore NPAs on sale (IE)

Kolkata-headquartered Allahabad Bank on Friday put on sale non-performing assets (NPAs) worth Rs 711 crore, including a Rs 165-crore exposure to the Patni group-owned Rohit Ferro-Tech, whose debt stood at Rs 2,889 crore at the end of March 2017. The other large exposures on the block are Kesar Enterprises (Rs 111 crore), NKB Infrastructure (Rs 78.5 crore) and Mohan Charitable Educational Trust (Rs 70 crore).

“ARCs (asset reconstruction companies) shall invest a minimum of 51% (or as prescribed/ changed by RBI up to the date of submission of the bids) of SRs (security receipts) on ongoing basis till the redemption of all SRs issued. In case of sale on cash-cum-SR basis, if more than one ARC offer same amount of bid, then preference will be given to that ARC which will offer higher cash component,” Allahabad Bank said in a sale document.

In case of accounts put on sale on cash basis as well as cash cum SR basis, if bids are received in both cash sale as well as cash cum SR sale, preference will be given to the ARC which offers a higher net present value, the bank said. E-bidding for the accounts will be held on September 14.

During this month alone, public-sector banks (PSBs) have put on sale NPAs worth Rs 9,089 crore to palm off exposures to bad loans unilaterally and make quick cash recoveries.

On Thursday, SBI put on sale a fresh batch of NPAs worth Rs 383 crore, days after it put on the block two accounts with a total outstanding of Rs 2,490 crore. Most of the accounts are being offered for sale on a full-cash basis. Bank of India (BoI) on Monday sought bids for 50 accounts with an aggregate outstanding of Rs 5,558 crore on a 100% cash basis.

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