SBI, OBC put stressed accounts on sale
NEW DELHI: State-owned State Bank of India (SBI) and Oriental Bank of Commerce (OBC) have put on sale various financial accounts to recover dues of around ₹5,740 crore.
The country’s largest lender, SBI, has invited bids from asset reconstruction companies (ARCS) and financial institutions (FIS) to recover an outstanding amount of ₹4,975 crore.
The bulk of accounts up for sale by SBI are of small and medium enterprises (SMES) that have dues amounting to ₹4,667 crore.
OBC wants to sell 13 accounts with a collective outstanding amount of ₹764.44 crore, according to the bid document placed on its website.
As many as 281 SME accounts are up for sale by SBI, belonging to those firms that have dues of up to ₹50 crore. The collective dues on these SMES are ₹4,666.50 crore.
“In terms of the bank’s policy on sale of financial assets, in line with the regulatory guidelines, we place these accounts for sale to BANKS/ARCS/NBFCS/FIS,” SBI said in an auction notice.
Also, SBI will sell t hree accounts—dennis Steels Pvt. Ltd with outstanding of ₹258.73 crore, Shiva Speciality Yarns (₹37.90 crore) and Bansidhar Spinning and Weaving Mills Ltd (₹11.73 crore).
Inviting expression of interest from ARCS and FIS, OBC said it proposes to sell its stressed financ i al asset s c omprising 1 3 accounts with principal balance of ₹764.44 crore.
Among t h e maj o r loan accounts invited for sale by OBC include Mittal Corp. Ltd (₹207.17 crore), Jayaswal Neco Industries Ltd (₹157.03 crore), NCS Sugars Ltd (₹106.60 crore), Mahalaxmi TMT Pvt. Ltd (₹77.61 crore), Kohinoor Steel (₹45.06 crore), Sova Ispat Alloys (₹37.99 crore), Atlantic Projects (₹33.36 crore) and Sova Ispat Alloys (Mega Projects) Ltd (₹31.28 crore).
E-bidding for State Bank of India accounts will take place on February 27. For Oriental Bank of Commerce, the e-bidding is scheduled for February 25.
OBC wants to sell 13 accounts with a collective outstanding amount of ₹764.44 crore.