Indian Overseas Bank Puts Up Jai Balaji Industries’ NPA Account For Sale
A hand cart puller walks past a branch of Indian Overseas Bank in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Indian Overseas Bank Puts Up Jai Balaji Industries’ NPA Account For Sale

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State-owned Indian Overseas Bank has invited bids to sell one of its non-performing asset accounts in order to recover dues of over Rs 187 crore.

The Kolkata-based borrower Jai Balaji Industries Ltd, which is into steel business, has an outstanding of Rs 187.10 crore of the bank.

“IOB invites bids from (securitisation companies) SCs/(reconstruction companies) RCs/banks/NBFCs/(financial institutions) FIs for sale of non-performing assets as per the list during the third quarter of the financial year 2019-20,” said the bank's stressed assets management department in a tender document.

The bank said this is the first lot of non-performing asset accounts to be sold during the ongoing quarter of the current financial year. The auction, to be held under the Swiss Challenge method, will take place on a cash-plus-security receipt basis, it added.

Two week’s time is given to the bidder for undertaking due diligence and the interested ones can conduct due diligence of the asset with immediate effect, after submitting expression of interest and executing a non-disclosure agreement with the bank, IOB said. The process of e-bidding is scheduled for Nov. 18.

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