SBI, UCO Bank look for buyers to sell Rs 1,245 cr NPAs; e-bidding to take place on 23 March

State-owned lenders State Bank of India (SBI) and UCO Bank are looking for buyers to sell non-performing accounts (NPAs) worth Rs 1,245 crore and have invited bids from ARCs, banks, NBFCs and FIs to clean their books of such dud assets. “In terms of bank’s revised policy on sale of financial assets in line with the regulatory guidelines, we place Zenith Birla (India) Ltd and Sona Alloys Pvt Ltd for sale to ARCs/banks /NBFCs/FIs,” SBI said in the bid document. Sona Alloys has an outstanding of Rs 647.64 crore towards SBI, while Zenith Birla has Rs 139.36 crore. It has asked the interested parties to place their expression on 12 March and the process of e-bidding will take place on 23 March. UCO Bank, based out of Kolkata, said it has identified about 13 NPA accounts with outstanding balance of Rs 457.98 crore and has invited expression of interest from asset reconstruction companies (ARCs), banks, financial institutions (FIs), non-banking financial companies (NBFCs) for the proposed sale of its NPAs by 13 March. [caption id=“attachment_1265243” align=“alignleft” width=“380”]  UCO Bank logo. Pic courtesy: Reuters[/caption] Last week also, the country’s largest lender SBI along with United Bank of India and long-term infrastructure lender IFCI have put up on sale a number of NPA accounts to recover Rs 16,349 crore loans given to various companies. The gross non-performing assets (NPAs) of all the banks in the country amounted to Rs 8.41 lakh crore at end-December, bulk of which is in the books of public sector banks (PSBs). Thus, the PSBs have in the recent past expedited their loan recovery process, specifically against those loans that have turned bad. Several mechanisms like referring cases of NPA accounts to National Company Law Tribunal (NCLT) to recover dues as well as selling bad loan accounts to asset reconstruction companies (ARCs)/banks/FIs/NBFCs.