SBI to offload NPAs worth over ~13 bn

Continuing with efforts to clean up its balance sheet, the country’s largest lender, State Bank of India, has put on sale non-performing assets (NPAs) worth over ~13 billion.

Banks intend to sale these bad loans, covering sectors such as steel and textile on a 100 per cent basis.

There are 12 corporate accounts from branches in Chandigarh, Kolkata and Hyderabad.

According to information document placed on SBI website, Ankit Metals and Power with an exposure of around ~6.9 billion, is the largest among them.

SBI executives said this was the second auction in the current financial year. Only asset reconstruction companies (ARCs), banks, finance companies and financial institutions can participate in the auction.

The first auction held in April 2018 was for NPAs worth ~8.48 billion.

The bank is offloading homes, office spaces and factories, kept as collateral for various loans, through a separate process. There is also an option for cashcum issuance of security receipts (SRs) for the sale of these assets.

The sale on cash-cum security receipts basis will be governed by following rules. The management fee would be 1.50 per cent per annum of net asset value (NAV) at the lower end of the range of the NAV specified by the credit rating agency for first 3 years.