The State Bank of India (SBI) has lined up various non-performing assets up for sale this month and the next, including the fraud account of Sintex BAPL, to recover over Rs 746 crore. In an auction scheduled for November 4, SBI will put up NPAs for sale to asset reconstruction companies (ARCs)/ financial institutions (FIs), banks or Non-Banking Financial Companies (NBFCs).
The auction of NPAs will include accounts of Sintex BAPL with an outstanding of Rs 197.74 crore; Surat Hazira NH6 Tollway Pvt Ltd of exposure of Rs 335.54 crore and Shreebhav Polyweaves Pvt Ltd (Rs 20.20 crore).
In case of Sintex BAPL, SBI said only ARCs are eligible in the e-auction as it is a fraud account. The outstanding of Rs 197.74 crore against the company includes bank guarantee of Rs 6.10 crore. The company’s business is manufacturing injection moulded plastic components for the automotive industry.
SBI said the proposed acquisition of these assets should not be funded and backed by promoters/company/guarantors or any of their related parties.
Later this month on October 31, e-auction of three accounts will take place: VVF India Ltd with loan outstanding of Rs 154.37 crore; Ashok Magnetics Ltd (formerly AML Steels) Rs 23.82 crore and Agarwalas Polytrade (Rs 15.03 crore).
“SBI reserves the right not to go ahead with the proposed transaction or modify any terms and conditions at any stage, without assigning any reason,” said the lender in the bid document.