State Bank of India to sell 3 bad loan accounts to recover Rs 2,111 crore dues; e-auction on 13 December

New Delhi: The country's largest lender State Bank of India (SBI) has put up for sale three of its non-performing loan accounts to recover dues of Rs 2,110.71 crore.

An e-auction will take place on 13 December for the sale of these three accounts—Sona Alloys Pvt Ltd, MCL Global Steel Pvt Ltd and Jayaswal Neco Industries.

"In terms of the bank's policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to banks/ARCs/NBFCs/ FIs etc, on the terms and conditions indicated there against," SBI said in the auction notice on its website.

SBI said the interested banks/asset reconstruction companies (ARCs)/non-banking financial companies (NBFCs) or financial institutions (FIs) can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a non-disclosure agreement with the bank.

Representational image. Reuters

Representational image. Reuters

Once the deal is finalised, the assignment deed and other legal formalities will be completed in the shortest possible time as mutually agreed upon, SBI added.

Earlier on 22 November, SBI held e-auction of 11 NPA accounts that had outstanding dues of Rs 1,019 crore towards the bank.

The gross non-performing assets (NPA) of the bank rose to 9.95 percent of the gross advances as on 30 September 2018 from 9.83 percent a year ago.

Net NPAs stood at 4.84 percent of the net advances, up from 4.53 percent.

The bank had posted a 69 percent decline in consolidated net profit to Rs 576.46 crore for the second quarter of this fiscal.

It had logged a net profit was Rs 1,840.43 crore in the corresponding July-September quarter of 2017-18.

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Updated Date: Dec 03, 2018 07:12:53 IST

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