Days after State Bank of India (SBI) sought bids from asset reconstruction companies (ARCs) and other investors for its exposure to Jayaswal Neco Industries, Punjab National Bank (PNB) has sought buyers for its own loans to the company. Like its larger peer, PNB, too, plans to carry out the sale through the Swiss challenge method based on a bid in hand from an investor interested in buying the asset. The existing bid offers Rs 501 crore in cash for PNB\u2019s total exposure of Rs 780 crore, of which Rs 727 crore is fund-based and the rest is non-fund-based. \u201cBesides the fund-based outstanding of Rs 726.76 crore at reserve price of Rs 501.46 crore, the bidder would also be required to furnish guarantee\/100% cash margin for the non-fund-based outstanding to the extent of Rs 53.35 crore, or the non-fund-based outstanding as on the date of assignment, whichever is higher,\u201d PNB said in a bid document. Seven months after the Supreme Court (SC) ordered maintaining a status quo on insolvency proceedings against manufacturing firm Jayaswal Neco, SBI had on Thursday sought bids for the company. The lender had said it already has a bid in hand from an investor interested in buying the asset and the auction will be through the Swiss challenge method, based on the existing bid. In April, the SC had passed its order directing a status quo after Jayaswal Neco pleaded that it should not have been subjected to insolvency proceedings because a majority of its lenders had agreed to a restructuring plan for the company\u2019s debt. Jayaswal Neco owes its lenders Rs 3,522 crore and was named in the RBI\u2019s second list of large non-performing assets (NPAs) which were to be resolved under the bankruptcy law, unless resolved by other means by mid-December. PNB has also put on sale 24 other bad-loan accounts worth an aggregate Rs 1,779 crore. Twelve of these are being offered only on a full-cash basis, with the rest is being sold through a mix of cash and security receipts. The largest of these accounts are Vandana Vidyut (Rs 454 crore), Moser Baer Solar (Rs 233 crore), Divine Vidyut (Rs 133 crore), Allied Strips (Rs 119 crore) and Visa Resources India (Rs 115 crore).