SBI to put 11 NPAs under the hammer on Nov 22, eyes recovery of Rs 10 bn

SBI has put up 11 non-performing assets (NPAs) for sale to ARCs and financial companies to recover dues of nearly Rs 10.19 billion.

The country's largest lender said the e-auction of these NPA accounts will take place on November 22.

"In terms of the bank's policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to ARCs/ Banks/ NBFCs/ FIs," SBI said in an auction notice on its website.

Of these 11 accounts, Janki Corp Ltd has the highest outstanding dues of Rs 5.92 billion.

Among others, Venus Remedies Ltd has to repay Rs 830.1 million, SBS Transpole Logistics Pvt Ltd Rs 633.6 million, R S Luth Education Trust Rs 606.2 million, Nilachal Iron & Power Ltd Rs 524.1 million and Sri Balmukund Polyplast Rs 501.2 million. The rest of the five companies owe the bank the remaining Rs 1.17 billion.

The interested asset reconstruction companies (ARCs)/ banks/ non-banking financial companies (NBFCs)/ financial institutions (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, State Bank of India (SBI) said.

Once the deal is finalised, the assignment deed and other legal formalities will be completed in the shortest possible time as mutually agreed upon, it added.

SBI's gross NPAs rose to 10.69 per cent of the total advances at the end of the first quarter ended June this fiscal year, as against 9.97 per cent a year ago. In value terms, they increased to Rs 2.12 trillion, from Rs 1.88 million.

SBI has reported a hefty loss of Rs 48.76 billion for the June quarter due to higher NPAs or bad loans.