SBI to sell NPAs worth Rs 2,490 cr
Team Udayavani, Aug 13, 2018, 6:34 PM IST
New Delhi: SBI will sell two non-performing assets (NPAs) worth about Rs 2,490 crore and has invited bids for them. In terms of the bank’s revised policy on sale of financial assets in line with the regulatory guidelines, “we place these accounts for sale to ARCs/banks/ NBFCs/FIs”, State Bank of India said in the bid documents.
The two accounts on sale are — Bombay Rayon Fashions Ltdwhich owes Rs 2,260.79 crore to the bank. The second account, Shivam Dhatu Udyog Pvt Ltd, has to repay Rs 229.32 crore.
The loan dues from Bombay Rayon excludes equity investment.
As per data from BSE, Bombay Rayon has 61.65 percent public shareholding. In the financial institutions category, SBI held the highest 29.28 percent equity in the company as on June 30, 2018.
Axis Bank had 8.04 percent, while Union Bank of India, Exim Bank, Bank of India, Punjab National Bank, Central Bank of India and Allahabad Bank have stakes varying from 1.61-3.35 percent.
“The interested ARCs/banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a non-disclosure agreement (NDA) with the bank,” SBI said.
The e-bids will be processed on August 20.
SBI’s gross NPAs rose to 10.69 percent of the total advances at the end of June this year, as against 9.97 percent a year ago. In value terms, they increased to Rs 2,12,840 crore, from Rs 1,88,068 crore.
In the first quarter ended June of the current fiscal, SBI has reported a hefty loss of Rs 4,876 crore for due to higher NPAs or bad loans.
Banks, especially state-owned, are sitting on bad loans worth lakhs of crores of rupees and are adopting aggressive approach to resolve them by making recoveries through various modes.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Tesla shares tumble below $150 per share, giving up all gains made over the past year
India not reaping benefits of democratic dividend: Raghuram Rajan
Markets slump for third day on fears of escalating tensions in Middle East; IT stocks drag
Tesla is planning to lay off 10 of its workers after dismal 1Q sales, multiple news outlets report
With just Rs 150 base airfare take a 50-minute flight
MUST WATCH
Latest Additions
LS polls phase 1: Voting underway in 102 seats, leaders urge people to turn up in large numbers
Fight to protect our Constitution and democracy begins today Kharge on LS polls
Aamir Khan deepfake video: Mumbai Police registers FIR against unnamed person
Srirangapatna twin children’s death: Mother confesses to having poisoned ice cream
B’luru: Mother of woman stabbed to death kills daughter’s murderer