India’s largest lender, State Bank of India, which registered a new loss of Rs.4,876 crore in the first quarter of the year has decided to sell two of its non-performing assets to recover money. The NPAs are worth Rs.2,490 crore, with the bank inviting bids for both, as per a report by MoneyControl.
While Bombay Rayon Fashions Limited is one of the accounts, the second one is Shivam Dhatu Udyog Private Limited. According to the report, Bombay Rayon owes SBI a whopping Rs.2,260.79 crore, with Shivam Dhatu Udyog owing the bank Rs.229.32 crore.
According to the bid documents released by SBI, these accounts are up for sale to banks/NBFCs/ARCs/FIs.
Bombay Rayon, which has public shareholding amounting to 61.65 per cent has SBI as its highest equity holder in the category of financial institutions. As of June 30 this year, SBI had an equity amounting to 29.28 per cent in the company.
Other banks which have a stake in Bombay Rayon include Bank of India, Axis Bank, Allahabad Bank, Central Bank of India, Punjab National Bank, and Exim Bank.
August 20 has been chosen as the date to process the e-bids.
SBI has seen its performance drop over the last three quarters, registering its third consecutive quarterly in Q1.