State Bank of India (SBI) has invited bids for the sale of Non-Performing Assets (NPAs) worth Rs 217 crore on a 100 percent cash basis. A notice issued by the biggest bank on its website on May 12, said the “bid with highest cash component shall be considered as successful bid” for the assets.
Two NPA accounts, Khare and Tarkunde Infrastructure worth Rs 99.84 crore and Heavy Metal and Tubes worth Rs 116.91 crore have been offered for sale.
The reserve price for the assets has been fixed at Rs 15 crore and Rs 27.5 crore for Khare and Tarkunde Infrastructure and Heavy Metal and Tubes, respectively, indicating a total haircut of 80 percent. The last date for submitting an Expression of Interest for the bid is May 17, 2021, SBI said in the notice.
Last month, SBI had invited bids for MSP Metallics that was worth nearly Rs 1,493 crore at the reserve price of Rs 350 crore. The account had a collective loan from 10 banks with SBI having the largest chunk of 37 percent.
During this year's union budget speech, Finance minister Nirmala Sitharaman announced plans to set up a new asset reconstruction company (ARC) and asset management company (AMC), its version of a bad bank, as part of a strategy to clean up banks’ balance sheets.
Moving towards setting up the bad bank, State Bank of India’s Padmakumar Madhavan Nair was appointed as the Chief Executive Officer (CEO) of the National Asset Reconstruction Company Limited (NARCL).
He is currently serving as the chief general manager (CGM), in-charge of stressed assets in SBI. He has been in charge of this department for the last few years and has experience in stressed assets management for long years.
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