SBI to auction Rs700 crore NPAs

State Bank of India will auction NPAs worth Rs700 crore this month to recover its dues from those borrowers. There will be three auctions in the month and the total amount outstanding is Rs700.34 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 Nov.18 while on Nov.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 a 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 “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 Rs16,000 crore on a quarterly basis.

The asset quality of the bank improved with gross non-performing asset (NPA) ratio coming in at 7.19 per cent, down 276 bps yearly and 34 bps sequentially. Net NPA ratio was at 2.79 per cent, down 205 bps YoY and 28 bps QoQ. The bank was holding total provisions of Rs22,399 crore, which was 89.63 per cent of total outstanding, as of September 30.

Meanwhile State Bank of India (SBI), country’s largest lender, reported a more than three-fold increase in its net profit to Rs3,012 crore in the second quarter (July-Sept).

Indo-Asian News Service