SBI, Union Bank to sell NPAs of Rs 2,836 cr this month
Mumbai: The country's largest lender State Bank of India (SBI) and Union Bank of India are looking to sell their non-performing loans totalling Rs 2,836 crore to banks, asset reconstruction companies and other financial institutions.
While SBI has put on sale Rs 1,554.87 crore of three assets, state-run Union Bank of India has invited bids to sell 11 NPAs worth Rs 1,280.87 crore, according to separate public notices by the two lenders.
All these NPAs will be sold through e-auctions during January. In a notice issued on Thursday, SBI said it will sell two NPAs- Rohit Ferro Tech with an outstanding amount of Rs 1,313.67 crore and Impex Ferro Tech with dues of Rs 200.67 crore, on January 17.
The bank said Rohit Ferro Tech will be sold on cash cum securities receipts with a 50:50 ratio and Impex Ferro Tech only on 100 per cent cash.Both the companies are promoted by Kolkata-based SKP Group which is into manufacturing, trading, import and export of ferro alloys. The group also has presence in steel, power cement sector. In a notice on its website on December 12, SBI had sought bids to sell another Kolkata-based engineering firm Avani Projects and Infrastructure, having an outstanding loans of Rs 40.53 crore.
The bad asset will be sold on 100 per cent cash basis through an e-auction to be held on January 10. Public sector lender Union Bank has invited all-cash bids for 11 NPAs.