 "Illustration by Binay Sinha")
State-owned SBI, United Bank of India and long-term infrastructure lender IFCI are looking for buyers to sell as many as 110 accounts that have turned dud to recover dues over Rs 163.49 billion (Rs 16,349 crore).
All the three have invited bids on Wednesday from eligible banks, financial institutions, asset reconstruction companies (ARCs) and non-banking financial companies (NBFCs) to prune such non-performing assets from their respective balance sheets.
SBI plans to sell a total of 15 such NPA accounts to recover Rs 9.89 billion (Rs 988.95 crore), including the country's largest sweetener manufacturer Simbhaoli Sugars that has an outstanding of Rs 1.59 billion (Rs 158.57 crore) to the bank.
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SBI has asked the bidders to submit an expression of interest by March 9, 2018, and further to complete the due diligence by March 22.
Delhi-based IFCI has expressed interest to sell a total of 23 NPA accounts for recovery of Rs 136.68 billion (Rs 13,667.50 crore) and while Kolkata-headquartered United Bank of India has put up for sale 72 bad assets with combined dues of Rs 16.93 billion (Rs 1,692.78 crore).
"SBI invites expression of interest from banks/asset reconstruction companies/NBFCs/FIs for the proposed sale of 15 non-performing assets (NPAs) with principal outstanding of Rs 988.95 crore (Rs 9.89 billion)," reads the SBI bid document published today.
Among other NPA accounts for whom SBI is scouting for buyers include Aksha Gold Ornaments, KBJ Jewels Industry India and KBJ Hotel Varanasi with a combined outstanding of Rs 1.64 billion (Rs 164.30 crore). Shri Jalaram Rice Industries owes Rs 1.27 billion (Rs 127.05 crore), while MCL Global Steel has loan outstanding loan of Rs 1 billion (Rs 100.18 crore) which the bank has failed to recover.
Eight companies based in Gujarat availed loans in the range of Rs 59 million to 634 million (Rs 5.90-63.39 crore) from SBI that have become NPA on the bank's balance sheet.
Continental Float Glass with dues of Rs 57.31 billion (Rs 5,730.51 crore), Synthetics & Chemicals Rs 20.04 billion (Rs 2,004.34 crore), Sanghi Polyesters Rs 19.64 billion (Rs 1,964.38 crore), Kumar's Metallurgical Corpn Rs 13.39 billion (Rs 1,339 crore), Electrex India Rs 6.7 billion (Rs 670.15 crore) are among the major NPA borrowers, whose account IFCI has put up for sale, showed the bid document.
Among others Bakeman's Industries has an outstanding of Rs 148.63 crore on IFCI, Lavasa Corporation Rs 1.84 billion (Rs 183.82 crore), Malwa Cotton Spg Mills Rs 1.72 billion (Rs 171.81 crore), IVRCL Indore Gujarat Tollways Rs 2.51 billion (Rs 251.26 crore) and IVRCL Chengapalli Leisures Rs 2.33 billion (Rs 233.47 crore) and Jindal India Powertech Rs 2.78 billon (Rs 277.90 crore).
IFCI will open the bids on March 26 while the declaration of successful bidders will be announced subsequently.
United Bank of India (UBI) said it proposes to sell 72 non-performing accounts having an outstanding of about Rs 16.93 billion (Rs 1,692.78 crore).
"The non-performing loans (NPLs) offered for sale will consist of sale of individual/multiple and /or consortium corporate loans and their related security interest, accrued interest, guarantee and fee and other associated rights and privileges," United Bank of India said and the bid will close on March 29.
Hapur (Uttar Pradesh) based Simbhaoli Sugars, also has become an NPA for another state-owned lender Oriental Bank of Commerce with outstanding of Rs 978.5 million (Rs 97.85 crore) in an alleged fraud case.
Oriental Bank of Commerce has already filed a case with CBI against the sugar manufacturer and the investigation is on into the matter.
Public sector banks are under stress to recover their bad loans and they sat on bad loans of Rs 7.34 trillion (Rs 7.34 lakh crore) at the end of the second quarter ended September of the current financial year, a bulk of which came from corporate defaulters.
