The State Bank of India will auction non-performing assets (NPAs) amounting to Rs 6,169 crore in the next 10 days to recover its dues from various defaulting business outfits…reports Asian Lite News
The country’s largest lender carries out auctions of financial assets of those defaulters who have not paid their dues. From March 22-30, the bank, which has already put out a list of the assets, will auction these to asset reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs) and FIs.
The accumulated value of assets on sale is Rs 6,169 crore and the actual realisation will happen depending on the reserve price and bids from the buyers.
The assets include Jain Infraprojects Ltd, Kamachi Industries Ltd, Parenteral Drugs, which will go on sale on March 22. The total outstanding of this sale, which also includes a few minor properties, is Rs 1,300 crore.
On March 26, the bank has put on sale assets worth Rs 3,645 crore of some big accounts like the India Steel Corporation (Rs 929 crore) and Jai Balaji Industries (Rs 859 crore). There are other companies also on sale like Kohinoor Planet Construction (Rs 207.77 crore) and Mittal Corp (Rs 859.33 crore). The SBI will also auction assets worth Rs 1,748 crore of BMM Ispat Ltd.
On March 29, the bank will sell assets worth Rs 776 crore where Yashasvi Yarns, Sumita Tex Spin, Shekhawati Poly-yarn Ltd and Shakumbhari Straw NPAs stand at Rs 305 crore.
The NPA recovery mechanism has yielded results, with the SBI’s gross non-performing assets (GNPAs) declining by 18,099 crore to stand at 1,87,765 crore as on December-end 2018.
The GNPAs improved from 10.35 per cent of gross advances in December-end 2017 to 8.71 per cent in December-end 2018. Net NPAs improved from 5.61 per cent of gross advances in December-end 2017 to 3.85 per cent in December-end 2018.