SBI and OBC invite bids from ARCs to sell stressed assets worth Rs.5,740 crore

0
118

Public sector banks State Bank of India (SBI) and Oriented Bank of Commerce (OBC) have placed stressed assets worth Rs.5,740 crore on sale to recover their outstanding dues. Various asset reconstruction companies (ARCs), financial institutions (FIs), and non-banking finance corporations (NBFCs) have been invited to bid on these assets. Both banks have put up auction notices on their official websites regarding the same.

stressed assets

The auction notice by SBI stated that these assets are placed on sale as per the bank’s policy on NPAs and other regulatory guidelines. A large chunk of these stressed assets came from small and medium enterprises (SMEs) that have defaulted on their loans. India’s largest lender SBI has placed SME accounts worth Rs.4,667 crore for sale. The total outstanding loans placed by SBI for sale are worth Rs.4,975 crore.

Among the assets placed by SBI for sale this time, Dennis Steels Pvt Ltd is the biggest account with outstanding loans worth Rs.258.73 crore. It is estimated that around 281 SME accounts have been placed for sale by SBI, and many of these individual accounts have dues worth up to Rs.50 crore.

OBC, on the other hand, has placed 13 accounts of stressed assets on sale. The collective worth of these accounts is around Rs.764.44 crore. Among the major loan accounts placed for sale by OBC, Mittal Corp Ltd is the largest with an outstanding loan of Rs.207.17 crore. Some of the other major accounts include Jayaswal Neco Industries, NCS Sugars, Mahalakshmi TMT, Kohinoor Steel, etc.

The e-bidding for the stressed assets of SBI will take place on February 27, and the bidding for OBC’s assets will be on February 25.

Non-performing assets continue to remain a major issue for all public sector banks in the country. SBI has auctioned its stressed assets many times in the past. In September 2018, the bank sold NPAs worth Rs.3,900 crore to various ARCs. Before that it has sold assets worth Rs.2,490 crore in August 2018.

Source: Economic Times

LEAVE A REPLY

Please enter your comment!
Please enter your name here