SBI, OBC put stressed ac­counts on sale

Aim to re­cover dues of ₹5,740 crore

The Hindu - - BUSINESS - Press Trust of In­dia

State-owned State Bank of In­dia (SBI) and Ori­en­tal Bank of Com­merce (OBC) have put on sale var­i­ous fi­nan­cial ac­counts to re­cover dues of about ₹5,740 crore.

SBI has in­vited bids from as­set re­con­struc­tion com­pa­nies (ARCs) and fi­nan­cial in­sti­tu­tions (FIs) to re­cover an out­stand­ing of ₹4,975 crore.

The bulk of ac­counts up for sale by SBI are of small and medium en­ter­prises (SMEs) that have dues of ₹4,667 crore. OBC wants to sell 13 ac­counts with a col­lec­tive out­stand­ing 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.

SBI will also sell three ac­counts — Den­nis Steels Pvt. Ltd. with out­stand­ing of ₹258.73 crore, Shiva Spe­cial­ity Yarns (₹37.90 crore) and Ban­sid­har Spin­ning & Weav­ing Mills Ltd. (₹11.73 crore).

Among the ma­jor loan ac­counts in­vited for sale by OBC are Mit­tal Corp Ltd. (₹207.17 crore), Jayaswal Neco In­dus­tries Ltd. (₹157.03 crore) and NCS Su­gars Ltd. (₹106.60 crore).

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