SBI puts up assets worth Rs 1,500 crore for sale

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26 Aug, 2025 12:21

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Country’s largest lender, State Bank of India (SBI) has put up assets worth over Rs 1,471 crore for sale to asset reconstruction companies (ARCs), according to a tender document on its website.

The largest among the loan accounts on sale is the Kolkata-based Adhunik Power & Natural Resources Ltd, where the bank is looking to sell loans worth Rs 807 crore and equity worth close to Rs 200 crore. This is the only high value account put up for sale.

Other corporate accounts up for sale include Shelter Infra Projects Pvt Ltd (Rs 22 crore of outstanding loans), Shiva Texfabs Ltd (Rs 320.7 crore), Surya World Education Research & Charitable Initiative (Rs 47 crore), Rita Plastics Pvt Ltd (Rs 21 crore) and Teracom Ltd (Rs 54 crore). Of these, Shelter Infra has been put up on auction to be sold on an all cash basis.

According to the auction notice, SBI is inviting expressions of interest (EoI) from ARCs for the Adhunik Power account at a reserve price of Rs 723 crore. Of this, the debt value is Rs 699 crore and the equity value is set at Rs 24 crore.

A consortium of 24 banks led by SBI have an exposure of 3,200 crore to the company which is classified as non-performing loans (NPA) with most lenders.

In its notice, SBI said that it has received approval from other lenders to Adhunik Power, including IFCI, Allahabad Bank, Oriental Bank of Commerce, Indian Overseas Bank, Dena Bank, UCO Bank, Punjab & Sindh Bank, Andhra Bank, Syndicate Bank and India Infrastructure Finance Co Ltd.

The sale of Adhunik Power’s debt would be on a cash-cum-security receipts basis, where 15 percent of the sale price would be paid upfront to the bank, while security receipts would be issued for the remaining 85 percent.

In all other accounts, the bank is looking at paying a 5 percent incentive amount to the ARC if the recovery is made within the first two years of buying the asset. If recovery is made in the third year, the incentive comes down to 4 percent and becomes nil from the fourth year, the notice said.

SBI has asked ARCs to submit their expression of interest by May 26 and has asked them to finish due diligence of the underlying assets by June 7. The process of e-bidding is expected to take place on June 9, the notice said.