Over 20 NPAs with ₹500 crore outstanding on sale by Punjab & Sind Bank, IoB

Punjab & Sind Bank and Indian Overseas Bank have put up over 20 non-performing accounts (NPAs) for sale, with a total principal outstanding of ₹500 crore, via a Swiss challenge auction

State-owned Punjab & Sind Bank has put up for sale thirteen non-performing accounts (NPAs) with a total principal outstanding of ₹347 crore and has invited expressions of interest (EoIs) from asset reconstruction companies (ARCs) and other interested buyers for a 100 per cent cash deal through a Swiss challenge auction.

 

Interestingly, the bank has set a reserve price of ₹364.58 crore, which exceeds the total principal outstanding of all the accounts, potentially enabling higher recoveries than the dues.

 

Some of the larger accounts among the thirteen on the block include Pioneer Gas Power, with a principal outstanding of ₹96.42 crore and a reserve price of ₹15.62 crore; Aman Hospitality, with a principal outstanding of ₹22.70 crore and a reserve price of ₹108.11 crore—nearly five times the outstanding amount; and Seven Seas Hospitality, with a principal outstanding of ₹17.32 crore and a reserve price of ₹67.48 crore—almost four times the outstanding amount.

 

Other accounts include Century Aluminum Manufacturing, Diksha Greens, Telephone Cable, Mukesh Udyog, C Gems & Jewels, Mora Tollways, Ranchi Expressways, Singh Hospitality & Resorts, Star Bazar Group of accounts, and Zee Knit & Weaves.

 

Interested buyers will have to submit EoIs by 31 July. “The bank will conduct counter bidding under the Swiss Challenge Method, keeping the highest offer price received by the bank, which is acceptable to the competent authority of the bank as the anchor bid/binding bid,” the bank said. 

 

Separately, Punjab & Sind Bank has sought a counter bid for Visa Bao, which has a principal outstanding of ₹22 crore, based on an anchor bid of ₹7.70 crore. Entities interested in buying the non-performing account have to bid ₹8.25 crore to be classified as the first challenger bid in the Swiss Challenge Auction scheduled on 4 August.

 

Meanwhile, state-owned Indian Overseas Bank has put up for sale seven non-performing accounts with a principal outstanding of ₹134 crore and a reserve price of ₹104.5 crore, translating into a recovery of 78 per cent for the lender.

 

Interestingly, the bank holds securities worth ₹152 crore for the accounts put up for sale.

 

Interested entities must submit their expressions of interest (EoIs) by 16 July. The e-auction will be conducted on 31 July, and all bids must be submitted on a 100 per cent cash basis.

 

The accounts include Aerens Goldsouk International, Marg Properties, Uttaranchal Iron and Ispat, Kadam & Kadam Gold Refiner, Talent Engineering Coimbatore, Andavar Poultry Farm, and Andavar Feeds.