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State Bank of India invites bids to sell 4 NPAs worth Rs 2.3 bn

State Bank of India invites bids to sell 4 NPAs worth Rs 2.3 bn

Mumbai:  State Bank of India has invited bids from asset reconstruction companies, banks, non-banking finance companies and financial institutions for proposed sale of four non-performing loan accounts worth 2.3 bln rupees, the lender said in a newspaper notice today.

Bidders have to submit expression of interest by Thursday and have to complete due diligence process by Jun 19. The e-bidding for the proposed sale will be held on Jun 20.

The four accounts put up for sale were loans extended to Lovely International Pvt Ltd and Lovely Enterprises Pvt Ltd with an outstanding of 946.3 mln rupees, Abhijeet Ferrotech Ltd with an outstanding of 887.2 mln rupees, Madurai Tuticorin Expressway Ltd with an outstanding of 221.7 mln rupees and Trichy Tanjavur Expressway Ltd with outstanding worth 243.6 mln rupees.

Most state-owned banks have been looking to sell bad loans to trim their outstanding exposure to non-performing assets and shore up their capital.

As of Mar 31, the bank’s gross non-performing asset ratio was 7.53%, compared with 8.71% a quarter ago and 10.91% a year ago. The net non-performing asset ratio was 3.01%, against 3.95% a quarter ago and 5.73% year ago.
At 1403 IST, shares of State Bank of India were down 0.8% at Rs 358.90.




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