India’s largest public sector bank, State bank of India to sell 8 Non-performing assets (NPAs) worth ₹3,900 cr later this month on 26th September and has invited bids for them. Headquartered in Mumbai, the bank has invited bids from ARCs, FIs, NBFCs, and banks on indicated terms and conditions.
The 8 accounts to be jeopardized are Kolkata-based Rohit Ferro Tech with the highest loan outstanding against it at ₹1,320.37 crore, followed by Indian Steel Corporation Ltd at ₹928.97 crore; Jai Balaji Industries at ₹859.33 crore, Mahalaxmi TMT Pvt Ltd at ₹409.78 crore, Impex Ferro Tech (₹200.67 crore), Kohinoor Steel Pvt Ltd (₹110.17 crore),
Modern India Concast (₹71.16 crore) and Ballarpur Industries (₹47.17 crore).
The inquisitive ARCs/ Banks/ NBFCs/ FIs can conduct due earnestness of these assets with
the immediate effect, after submitting the expression of interest and executing a Non-Disclosure Agreement (NDA) with the Bank. However, please note that the sale will be subject to final approval by the Competent Authority of the Bank says the notice by SBI.
The government-owned corporation, earlier this year has recorded its highest NPA of 1.1 lakh crores in 2017-18 according to information available through RTI and the bank’s annual report and has seen a loss of ₹4,876 crore in 1 first quarter of this financial year. The has also sold two NPAs worth ₹2,490 crore of, Bombay Rayon and Shivam Dhatu Udyog last month in August.
According to the bank, in a reply to an RTI application by IANS, the rising NPA levels and fresh slippages across sectors could give inadequate elevate to the worldwide economy, negative consequence from the global financial market, less domestic growth, tumbling in export late realisation of receivables due to reduced demand, subdue market confidence and stress in steel, power and infrastructure projects.
SBI is the bellwether of the Indian economic system. With better recovering strategy and bidding the bank thrives to cover its bad loans and losses.