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SBI to sell NPAs Bombay Rayon Fashions, Shivam Dhatu worth Rs 2,490 cr

In the first quarter ended June of the current fiscal, SBI has reported a hefty loss of Rs 4,876 crore for due to higher NPAs or bad loans.


PTI Last Updated at 12 Aug 2018, 14:08 IST India

SBI will sell two non-performing assets (NPAs) worth about Rs 2,490 crore and has invited bids for them.

In terms of the bank's revised policy on the sale of financial assets in line with the regulatory guidelines, "we place these accounts for sale to ARCs/banks/ NBFCs/FIs", State Bank of India said in the bid documents.

The two accounts on sale are -- Bombay Rayon Fashions Ltd which owes Rs 2,260.79 crore to the bank. The second account, Shivam Dhatu Udyog Pvt Ltd, has to repay Rs 229.32 crore.

The loan dues from Bombay Rayon excludes equity investment.

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

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

"The interested ARCs/banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting an expression of interest and executing a non-disclosure agreement (NDA) with the bank," SBI said.

The e-bids will be processed on August 20.

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

In the first quarter ended June of the current fiscal, SBI has reported a hefty loss of Rs 4,876 crore 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 an aggressive approach to resolve them by making recoveries through various modes.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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