ARCS
SBI plans to sell 6 NPA accounts to ARCs
State Bank of India, which reported its highest quarterly net profit of Rs 8,431.9 crore for the October-December period, has decided to sell six NPA accounts to ARCs.
State Bank of India, which reported its highest quarterly net profit of Rs 8,431.9 crore for the October-December period, has decided to sell six NPA accounts to ARCs.
State Bank of India, which reported its highest quarterly net profit of Rs 8,431.9 crore for the October-December period, has decided to sell six bad loan accounts to asset reconstruction companies (ARCs).
The dues from these non-performing assets (NPAs), worth nearly Rs 406 crore, are from Patna Bakthiyarpur Tollway, Steelco Gujarat Ltd, GOL Offshore Ltd, Andhra Ferro Alloys Ltd, Guru Ashish Taxfab and Genix Automations Pvt Ltd.
While Patna Bakthiyarpur Tollway owes Rs 230.66 crore, Steelco Gujarat has outstanding of Rs 68.31 crore, GOL Offshore Rs 50.75 crore, Andhra Ferro Alloys Rs 26.73 crore, Guru Ashish Taxfab Rs 17.07 crore and Genix Automations Rs 12.23 crore.
"In terms of the bank's policy on sale of financial assets, in line with the regulatory guidelines, we place the following accounts for sale to ARCs/banks/ NBFCs/FIs, on the terms and conditions indicated there against," SBI said in the sale notices for these stressed assets.
The e-auction for Patna Bakthiyarpur is scheduled to take place on February 23, and GOL Offshore on February 21. Genix Automations and Guru Ashish Texfab are to be auctioned on February 15, while e-auction for Steelco Gujarat and Andhra Ferro Alloys is scheduled for March 4, news agency PTI reported.
SBI said these sales are subject to approval by the competent authority of the bank.
The auction of Patna Bakthiyarpur Tollway, Steelco Gujarat Ltd, Andhra Ferro Alloys, Genix Automations and Guru Ashish Texfab will be held under Swiss Challenge Method, based on an existing offer in hand, who will have the right to match the highest bid, the lender said.
Under the Swiss Challenge Method, an interested bidder makes a proposal for a project (here asset). The seller puts the details of the project in public so that others can match it. After receipt of bids, the original contractor gets an opportunity to match the best bid.
The interested ARCs/banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting expressions of interest and executing non-disclosure agreements with the bank.
"We reserve the right not to go ahead with the proposed sale at any stage, without assigning any reason. The decision of the bank in this regard shall be final and binding," SBI said.
