 "SBI to sell NPAs of over Rs 3,550 cr to ARCs, finance companies")
To clean its books the country’s largest lender State Bank of India (SBI) is selling portfolio of 24 non-performing assets (NPAs) to asset reconstruction companies (ARCs) and finance companies. The total outstanding for 24 accounts is about Rs 3,554 crore, according to a document prepared for sale transactions.
The top accounts include Jai Balaji Industries (Rs 873 crore), MSP Metalics (Rs 554 crore) and Shiva Textfab Ltd (Rs 531 crore).
These accounts — small and medium size units — belong to sectors including steel, power, textiles and hospitality. SBI’s gross NPAs
at the end of June 2017 stood at Rs 1,88,068 crore. These include gross NPAs of erstwhile associate banks that merged with it on April 1. The incentive on net recovery amount will be given to ARCs if recovery is effected within three years, SBI said.
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