State Bank of India to auction Rs 700 crore NPAs this month
The e-auction will take place of Sankalp Engineering & Pvt. Ltd. and Anjanay Rice Mill Pvt. Ltd. among others
State Bank of India will auction NPAs worth Rs 700 crore this month to recover its dues from those borrowers. There will be three auctions in the month and the total amount outstanding is Rs 700.34 crore, according to SBI's auction plan.
Ludhiana-based Regency Aqua Electro & Hotel Resorts Pvt. Ltd. and Kolkata-based Lovely International Pvt. Ltd. will be auctioned on November 18 while on November 29, the e-auction will take place of Sankalp Engineering & Pvt. Ltd. and Anjanay Rice Mill Pvt. Ltd. among others.
On November 7, e-auction of Bhopal-based Bhatia Global Trading Limited (BGTL) which has due of Rs 177 crore. It will be among several other assets is scheduled to be auctioned that day.
As per Bank's revised Policy on Sale of Financial Assets, SBI places accounts for sale to ARCs/ Banks/ NBFCs/ FIs, on the terms and conditions indicated there against.
All these accounts are to be auctioned under the "Swiss Challenge Method", based on an existing offer in hand, who will have the right to match the highest bid. In the latest Q2 results, SBI's Fresh slippages halved to Rs 8,800 crore from Rs 16,000 crore on a quarterly basis.
The asset quality of the bank improved with gross non-performing asset (NPA) ratio coming in at 7.19 percent, down 276 bps yearly and 34 bps sequentially. Net NPA ratio was at 2.79 percent, down 205 bps YoY and 28 bps QoQ. The bank was holding total provisions of Rs 22,399 crore, which was 89.63 percent of total outstanding, as of September 30.
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