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, SBI said in the bid documents that it places these accounts for sale to asset reconstruction companies/banks/ non-banking financial companies and financial institutions.
The two accounts on sale are Bombay Rayon Fashions (BRFL) and Shivam Dhatu Udyog. BRFL owes nearly Rs 2,261 crore, while Shivam Dhatu Udyog has to repay Rs 229 crore. The loan dues from Bombay Rayon excludes equity investment.
According to data from the BSE, Bombay Rayon has a 61.65% public shareholding. In the financial institutions category, SBI held the highest 29.28% equity in the company as on June 30, 2018.
Axis Bank had 8.04%, 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%.
“The interested ARCs/banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting an 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 nearly 11% of the total advances at the end of June this year, as against 9.9% 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 an aggressive approach to resolve them by making recoveries through various modes.