December 6, 2022
In Oct-Nov SBI will auction of NPAs of 746 crore

The State Bank of India (SBI) In Oct-Nov has lined up various non-performing assets of Rs 746 crore for sale this month and the next, including the fraud account of Sintex BAPL.

SBI will offer NPAs for sale to banks, non-banking financial firms, asset reconstruction companies (ARCs), and financial institutions (FIs) in an auction scheduled for November 4 (NBFCs).

Accounts of Sintex BAPL with an outstanding of ₹197.74 crores, Surat Hazira NH6 Tollway Pvt Ltd of exposure of ₹335.54 crores and Shreebhav Polyweaves Pvt Ltd ( ₹20.20 crore) will be included in the auction of NPAs.

An auction is scheduled on November 4, SBI has said that for Sintex BAPL, only ARCs are eligible in the e-auction as it is a fraud account.

SBI stated that because Sintex BAPL is a fraud account, only ARCs are eligible for the e-auction in this case. Bank guarantees of Rs. 6.10 crore are included in the unpaid amount of Rs. 197.74 crores against the company.

SBI said the proposed acquisition of these assets should not be funded and backed by promoters/company/guarantors or any of their related parties. Later this month on October 31, an e-auction of three accounts will take place: VVF India Ltd with a loan outstanding of Rs 154.37 crore; Ashok Magnetics Ltd (formerly AML Steels) Rs 23.82 crore and Agarwalas Polytrade (Rs 15.03 crore).

“SBI reserves the right not to go ahead with the proposed transaction or modify any terms and conditions at any stage, without assigning any reason,” said the lender in the bid document.

Leave a Reply

Your email address will not be published. Required fields are marked *