India's largest lender State Bank of India is going all out to stem the rot and clean up it’s books. CNBC-TV18 learns from top management sources that the bank has put Rs. 4,400 crores of bad loans on the block as part of the monthy auction of non-performing assets (NPAs).
It is looking to sell 66 non-performing loan accounts to asset reconstruction companies. The lender show-cased these accounts on the 10th of July and has invited bids from India’s top 15 asset reconstruction companies (ARCs). It expects the bids to come in by the end of the month.
Of the 66 accounts, some of the larger ones include GET Power where the bank has an exposure of Rs. 540 crores, XL Energy worth Rs. 415 crores, Shiv Vani Oil worth Rs. 271 crores, Wanbury for Rs. 175 crores and Corporate Ispat where SBI has an exposure of Rs. 148 crores.
The lender sold Rs. 4,500 crore worth of NPAs to ARCs in the March quarter of FY15, but sales in the first quarter of the current financial year are expected to remain muted. The bank, however, hopes that sales to ARCs will pick up in the coming months and help it bring down some of its whopping Rs. 62,000 crore non-performing loans (NPLs).
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