SBI puts ₹1,580 cr worth of bad loans up for sale

Hindustan Times ST (Jaipur) - - World - Alekh Ar­chana alekh.a@livemint.com

State Bank of In­dia (SBI) has ini­ti­ated the process of sell­ing R1,580 crore of bad loans to fi­nan­cial in­sti­tu­tions in­clud­ing as­set re­con­struc­tion com­pa­nies (ARCs). The bank has put on block 11 non-per­form­ing as­sets (NPA) for sale through a bid­ding process, ac­cord­ing to the ten­der on the bank’s web­site.

“Right now, in­ter­ested par­ties are con­duct­ing due dili­gence. Once that is com­pleted, the bid­ding process will take place later this month,” a per­son aware of the de­vel­op­ment said on con­di­tion of anonymity.

Last month, SBI put R3,554 crore of bad loans up for sale. In that auc­tion, the bank re­ceived bids only for a por­tion of the to­tal amount; SBI is await­ing fi­nal ap­provals to go ahead with the sale, said a sec­ond per­son, who also re­quested anonymity.

In the first half of fis­cal 2018, the bank man­aged to sell R763 crore of bad loans to ARCs

“ARC sale has not been sig­nif­i­cant in these (first) two quar­ters. I think now, with In­sol­vency & Bank­ruptcy Code in the pic­ture, the whole strat­egy, par­tic­u­larly around cor­po­rate cases, more and more prob­a­bly get re­ferred to the NCLT (Na­tional Com­pany Law Tri­bunal),” Ra­jnish Ku­mar, SBI’s chair­man, said in an earn­ings call on Novem­ber 10.

MUM­BAI:

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