Bank of Baroda to put 35 NPAs up for sale to recover Rs 4,237-cr dues

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Mumbai | Published: November 22, 2018 3:51:23 AM

Bank of Baroda has proposed to put 35 non-performing assets (NPAs) up for sale, including several ailing power assets, to recover dues worth Rs 4,237 crore and has invited expressions of interest from asset reconstruction companies (ARCs) and financial institutions (FIs).

bob, bank of barodaLenders have been known to put on sale exposures to cases headed to the NCLT, or being resolved under IBC for quick cash-based recoveries, in an attempt to avoid delays in resolution and excessive litigation.

Bank of Baroda has proposed to put 35 non-performing assets (NPAs) up for sale, including several ailing power assets, to recover dues worth Rs 4,237 crore and has invited expressions of interest from asset reconstruction companies (ARCs) and financial institutions (FIs). In a notification on its website, the bank said, “Besides the amount outstanding under any disbursed loans, Bank shall notify the Purchaser details of any un-devolved LCs/BGs yet to be invoked/ installments of DPGs, which are not yet due, in respect of the NPA accounts being offered for sale by the Bank.” Of the 35 accounts on the block, Jindal India Thermal Power has the highest loan outstanding against it at Rs 334.93 crore, followed by Rathi Steel And Power at Rs 290.52 crore.

Rolta India and GVK Power Goindwal Sahib, which were referred for resolution under the Insolvency and Bankruptcy Code (IBC) in September, are also up for sale at Rs 287.38 crore and Rs 266 crore, respectively. Others among the remaining accounts belong to GVK Gautami Power (Rs 91.30 crore), GVK Industries (Rs 103.29 crore), GMR Chhattisgarh Energy (Rs 218.37 crore), GTL (Rs 97.58 crore) and Jaiprakash Power Ventures (Rs 230.75 crore). Also up for sale yet again is Visa Steel (Rs 90.95 crore), which is part of the Reserve Bank of India’s second list of non performing assets flagged by the central bank for referral to the NCLT under IBC.

Lenders have been known to put on sale exposures to cases headed to the NCLT, or being resolved under IBC for quick cash-based recoveries, in an attempt to avoid delays in resolution and excessive litigation.

Bank of Baroda suggested the interested ARCs/FIs/Banks can conduct the due diligence of these assets with immediate effect following submission of the expression of interest and execution of a non-disclosure agreement with the bank, which was to take place latest by December 10.

State-run Dena Bank also invited bids from all eligible ARCs, non-banking financial companies and banks for sale of 84 NPAs with an outstanding principal balance of about Rs 3,323.77 crore, which would be sold through an e-bidding process scheduled for November 29.

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