SBI, OBC put Rs 5,740-cr NPAs on sale

The Free Press Journal - - BUSINESS -

NEWDELHI: 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 Rs 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 of Rs 4,975 crore.

The bulk of ac­counts up for sale by SBI are of small and medium en­ter­prises (SMEs) that have dues amount­ing to Rs 4,667 crore.

OBC wants to sell 13 ac­counts with a col­lec­tive out­stand­ing of Rs 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 Rs 50 crore. The col­lec­tive dues on these SMEs are Rs 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 three ac­counts -- Den­nis Steels with out­stand­ing of Rs 258.73 crore, Shiva Spe­cial­ity Yarns (Rs 37.90 crore) and Ban­sid­har Spin­ning & Weav­ing Mills (Rs 11.73 crore). Invit­ing ex­pres­sion of in­ter­est from ARCs and FIs, Ori­en­tal Bank of Com­merce said it pro­poses to sell its stressed fi­nan­cial as­sets com­pris­ing 13 ac­counts with prin­ci­pal bal­ance of Rs 764.44 crore.

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