The State Bank of India (SBI) has put up 15 major accounts with non-performing assets worth Rs.988 crore for sale. These accounts will be sold in an auction process, and SBI has asked bidders to express their interest by March 9. For these NPA accounts, SBI expects due diligence process to be completed by March 22. Among the major accounts put up for sale, Uttar Pradesh based Simbhaoli Sugars has loans to the tune of Rs.158.57 crore.
The sale of NPA accounts was published in a bid document released by SBI. The document listed the names of defaulting companies and the loan amount they owe to the bank. Among the major accounts listed in the bid document, Shri Jalaram Rice Industries has an outstanding loan of Rs.127.05 crore and MCL Global Steel owes the bank Rs.100.18 crore.
Other companies listed in the document include Aksha Gold Ornaments, KBJ Hotel Varanasi, and KBJ Jewels Industry India. These companies have a combined outstanding loan amount of Rs.164.30 crore. Once the due diligence process is completed, the bidding process is expected to begin on March 23.
In addition to SBI, many of these companies also owe money to various other public sector banks in the country. For instance, Simbhaoli Sugars have an outstanding debt of Rs.97.85 crore in the Oriental Bank of Commerce.
The rising amount of NPAs has become a major concern for public sector banks in the country. The overall NPAs in the country have already crossed Rs.8.5 lakh crore. This is expected to touch Rs.9.5 lakh crore by the end of this month. Despite the measures taken by the banks to deal with bad loans, NPAs do not have a swift resolution process yet.
This is not the first time that SBI is selling off its non-performing assets. In January, SBI announced the sale of NPAs worth Rs.380 crore in the education sector. Asset reconstruction companies will be invited to bid on the NPAs before they get allocated to the highest bidder.