State Bank of India, Punjab National Bank to sell 15 NPAs worth Rs 10.63 bn

Leading public sector lenders State Bank of India (SBI) and Punjab National Bank (PNB) have put their 15 non-performing assets worth Rs 10.63 billion for sale.

Both the banks said they will conduct the e-auction on 20th of this month.

SBI has put up a total of 12 accounts with total outstanding of Rs 8.48 billion for sale.

"...we place these accounts for sale to asset reconstruction companies (ARCs)/banks/NBFCs/financial intuitions," said SBI, the country's largest bank.

Of these accounts, Surat-based Garden Silk Mills has the highest outstanding of Rs 2.25 billion, followed by Korba West Power Company (Gurgaon) Rs 1.24 billion, Modern Steels (Chandigarh) Rs 1.22 billion and SNS Starch (Secunderabad) Rs 668 million.

Rest NPA accounts include Leitwind Shriram Manufacturing Pvt Ltd (Rs 649.5 million), Unijules Life Sciences (Rs 592.5 million), Scania Steels & Power (Rs 424.2 million), KSM Spinning Mills (Rs 404.2 million), Modern Dairies (Rs 399.3 million), Asmita Papers (Rs 372.3 million), Forel Labs (Rs 228.6 million) and Jaipur Metal & Electricals (Rs 21.6 million).

The second largest public sector lender PNB will offer three NPA accounts with total outstanding of Rs 2.14 billion for sale to ARCs/NBFCs/banks or other financial institutions.

The three accounts are Shree Sidhbali Ispat Ltd (Meerut) with non-performing loans of (Rs 1.65 billion), Sri Guruprabha Power Ltd (Chennai) Rs 315.2 million and Dharamnath Investment (Mumbai) Rs 176.3 million.

All the 21 public sector banks had gross bad loans of over Rs 7.33 trillion as on December 31, 2017. Of this, the SBI had the highest share of Rs 2.01 trillion followed by Punjab National Bank Rs 552 billion, IDBI Bank Rs 445 billion, Union Bank of India Rs 380 billion, among others.

State Bank of India