SBI To Sell Three Bad Loan Accounts To Recover Rs 2,111 Crore Dues
State Bank of India has put up for sale three of its non-performing loan accounts to recover dues of Rs 2,110.71 crore.
The country's largest lender will hold an e-auction on Dec. 13 for the sale of three accounts - Sona Alloys Pvt. Ltd., MCL Global Steel Pvt. Ltd. and Jayaswal Neco Industries.
"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/asset reconstruction companies /non-banking financial companies/financial institutions etc., on the terms and conditions indicated there against," SBI said in the auction notice on its website.
SBI said the interested banks/asset reconstruction companies/non-banking financial companies or financial institutions can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a non-disclosure agreement with the bank.
Once the deal is finalised, the assignment deed and other legal formalities will be completed in the shortest possible time as mutually agreed upon, SBI said.
Earlier on Nov. 22, SBI held an e-auction of 11 NPA accounts that had outstanding dues of Rs 1,019 crore towards the bank.
The gross non-performing assets of the bank rose to 9.95 percent of the gross advances as on Sep. 30, 2018 from 9.83 percent a year ago.
Net NPAs stood at 4.84 percent of the net advances, down from 4.53 percent.
The bank had posted a 69 percent decline in the consolidated net profit to Rs 576.46 crore for the second quarter of this fiscal.
It had logged a net profit of Rs 1,840.43 crore in the corresponding July-September quarter of 2017-18.