SBI to sell 3 bad loan accounts to recover Rs 2,111 crore dues

By: | Published: December 2, 2018 11:32 AM

The country's largest lender SBI has put up for sale three of its non-performing loan accounts to recover dues of Rs 2,110.71 crore.

SBI to sell 3 bad loan accounts to recover Rs 2,111 crore dues

The country’s largest lender SBI has put up for sale three of its non-performing loan accounts to recover dues of Rs 2,110.71 crore. An e-auction will take place on December 13 for the sale of these three accounts — Sona Alloys Pvt Ltd, MCL Global Steel Pvt Ltd and Jayaswal Neco Industries.

“In terms of the bank’s policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to banks/ARCs/NBFCs/ FIs etc, on the terms and conditions indicated there against,” SBI said in the auction notice on its website. SBI said the interested banks/asset reconstruction companies (ARCs)/non-banking financial companies (NBFCs) or financial institutions (FIs) can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a non-disclosure agreement with the bank.

READ ALSO | Share market outlook: RBI policy, G20 meet outcome to steer Sensex, Nifty; check top stock picks for next week

Once the deal is finalised, the assignment deed and other legal formalities will be completed in the shortest possible time as mutually agreed upon, SBI added. Earlier on November 22, SBI held e-auction of 11 NPA accounts that had outstanding dues of Rs 1,019 crore towards the bank. The gross non-performing assets (NPA) of the bank rose to 9.95 per cent of the gross advances as on September 30, 2018 from 9.83 per cent a year ago.

READ ALSO | Trump to tweak H1B norms: Visas only for most-skilled, highest-paid

Net NPAs stood at 4.84 per cent of the net advances, down from 4.53 per cent. The bank had posted a 69 per cent decline in consolidated net profit to Rs 576.46 crore for the second quarter of this fiscal. It had logged a net profit was Rs 1,840.43 crore in the corresponding July-September quarter of 2017-18.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition