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SBI to sell NPAs of Bombay Rayon Fashions, Shivam Dhatu worth Rs 24.90 bn

The two accounts on sale are -- Bombay Rayon Fashions Ltd which owes Rs 22.60 billion to the bank. The second account, Shivam Dhatu Udyog Pvt Ltd, has to repay Rs 2.29 billion

Press Trust of India  |  New Delhi 

SBI
SBI

will sell two non-performing assets (NPAs) worth about Rs 24.9 billion 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, "we place these accounts for sale to ARCs/banks/ NBFCs/FIs", of India said in the bid documents.

The two accounts on sale are -- which owes Rs 22.60 billion to the The second account, Shivam Dhatu Udyog Pvt Ltd, has to repay Rs 2.29 billion.

The loan dues from Bombay Rayon excludes equity investment.

As per data from BSE, Bombay Rayon has 61.65 per cent public shareholding. In the financial institutions category, held the highest 29.28 per cent equity in the company as on June 30, 2018.

had 8.04 per cent, while Union Bank of India, Exim Bank, Bank of India, Punjab National Bank, Central and have stakes varying from 1.61-3.35 per cent.

"The interested ARCs/banks/NBFCs/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," said.

The will be processed on August 20.

SBI's gross NPAs rose to 10.69 per cent of the total advances at the end of June this year, as against 9.97 per cent a year ago. In value terms, they increased to Rs 2,12,840 trillion, from Rs 1,88,068 trillion.

In the first quarter ended June of the current fiscal, SBI has reported a hefty loss of Rs 48.76 billion 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 aggressive approach to resolve them by making recoveries through various modes.

First Published: Sun, August 12 2018. 13:12 IST
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