IOB puts Jai Balaji Industries' Rs 187-cr NPA account up for sale

State-owned Indian Overseas Bank (IOB) has invited bids to sell one of its non-performing asset accounts in order to recover dues of over Rs 187 crore.

The Kolkata-based borrower Jai Balaji Industries Ltd, which is into steel business, has an outstanding of Rs 187.10 crore of the bank.

"IOB invites bids from (securitisation companies) SCs/(reconstruction companies) RCs/banks/NBFCs/(financial institutions) FIs for sale of non-performing assets as per the list during the third quarter of the financial year 2019-20," said the bank's stressed assets management department in a tender document.

The bank said this is the first lot of non-performing asset accounts to be sold during the ongoing quarter of the current financial year.

The auction, to be held under the Swiss Challenge method, will take place on a cash-plus-security receipt basis, it added.

Two week's time is given to the SCs/ARCs/Banks/NBFCs/FIs for undertaking due diligence and the interested ones can conduct due diligence of the asset with immediate effect, after submitting expression of interest (EOI) and executing a non-disclosure agreement with the bank, IOB said.

The process of e-bidding is scheduled for November 18.