SBI To Sell NPAs Bombay Rayon Fashions, Shivam Dhatu

Economy

SBI To Sell NPAs Bombay Rayon Fashions, Shivam Dhatu

SBI will sell two non-performing assets (NPAs) worth about Rs 2,490 crore and has invited bids for them. In terms of the bank's revised policy on sale of financial assets in line with the regulatory guidelines, "we place these accounts for sale to ARCs/banks/NBFCs/FIs", State Bank of India said in the bid documents.

The two accounts on sale are--Bombay Rayon Fashions Ltd which owes Rs 2,260.79 crore to the bank. The second account, Shivam Dhatu Udyog Pvt Ltd, has to repay Rs 229.32 crore. The loan dues from Bombay Rayon excludes equity investment. As per data from BSE, Bombay Rayon has 61.65% public shareholding. In the financial institutions category, SBI held the highest 29.28% equity in the company as on June 30, 2018. Axis Bank had 8.04%, while Union Bank of India, Exim Bank, Bank of India, Punjab National Bank, Central Bank of India and Allahabad Bank have stakes varying from 1.61-3.35%. "The interested ARCs/ banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a non-disclosure agreement (NDA) with the bank," SBI said.

The e-bids will be processed on August 20.

SBI's gross NPAs rose to 10.69% of the total advances at the end of June this year, as against 9.97% a year ago. In value terms, they increased to Rs 2,12,840 crore, from Rs 1,88,068 crore.