State Bank of India (SBI) has put on sale a fresh batch of non-performing assets (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. The latest set of seven NPAs put on sale includes four Kolkata-based accounts and one each from Bhubaneswar, Ludhiana and Mumbai. The largest of these accounts is Ludhiana-based Yogindra Worsted (Rs 68.33 crore), for which the reserve price has been set at Rs 28.13 crore. “For each of above-mentioned assets, bid with highest cash component shall be considered as successful bid,” SBI said in a sale notice. Bidding for the accounts will be held on September 10.
Public-sector banks (PSBs) have put on sale non-performing assets (NPAs) worth Rs 8,706 crore since the signing of the inter-creditor agreement (ICA) on July 23, implying that they will continue to look for other ways to palm off exposures to bad loans unilaterally and make quick cash recoveries. All PSBs have signed the ICA. Indeed, if NPA sales by lenders who have not signed the ICA were taken into account, the cumulative outstandings on sale would stand at Rs 20,810 crore. While IFCI has put loans worth Rs 11,042 crore on sale, Axis Bank has sought buyers for exposures worth Rs 1,062 crore.
Earlier this month, State Bank of India (SBI) sought buyers for two accounts with a total outstanding of Rs 2,490 crore. The accounts are Bombay Rayon Fashions (Rs 2,261 crore) and Shivam Dhatu Udyog (Rs 229 crore). Importantly, the bank intends to make 93.34% cash recovery from the first account and a full cash recovery from the second. Bidding for the two accounts will be held on August 20.