SBI, Axis Bank put smaller corporate NPAs on sale

1 month ago

On Tuesday, SBI sought full-cash bids for its Rs 68.31-crore exposure to Steelco Gujarat, with the reserve price set at Rs 38 crore.

In November, SBI had similarly sought bids for SRs issued against its exposure to CM Smith and Sons by Invent Assets Securitisation & Reconstruction in January 2015.In November, SBI had similarly sought bids for SRs issued against its exposure to CM Smith and Sons by Invent Assets Securitisation & Reconstruction in January 2015.

State Bank of India (SBI) and Axis Bank on Tuesday sought buyers for two separate non-performing asset (NPA) accounts. In recent months, banks have been seeking bids from asset reconstruction companies (ARCs) for bad assets which are unlikely to be resolved through the ARC or through the insolvency route.

On Tuesday, SBI sought full-cash bids for its Rs 68.31-crore exposure to Steelco Gujarat, with the reserve price set at Rs 38 crore. Axis Bank put on sale its external commercial borrowing facility to Anrak Aluminium, which stood at $22.75 million, or Rs 170.6 crore, as on September 30. The reserve price has been set at $5.44 million, or Rs 40.8 crore.

During the December quarter so far, SBI has announced auctions for NPAs worth Rs 6,205 crore. The list of loans includes the accounts of KSK Mahanadi Power and Coastal Energen, which are two of the large power assets that remain unresolved.

Banks have also begun scouting for buyers for security receipts (SRs) issued against bad-loan sales from seven-eight years ago. Industry executives that FE spoke to said SRs which have not been redeemed are liable to attract increased provisioning and lenders may want to cash out rather than provide more.

Bank of India on Tuesday issued a notice seeking bids for SRs with a face value of Rs 14.67 crore issued against loans to Madanapalle Spinning Mills by Maximus ARC in November 2017. In November, SBI had similarly sought bids for SRs issued against its exposure to CM Smith and Sons by Invent Assets Securitisation & Reconstruction in January 2015.

Read Full Article at Source