SBI's NPA auction seeks to raise more than Rs 746 crore

10 Oct 2022 , 10:37 AM

The State Bank of India (SBI) has put up a number of non-performing assets for sale this month and the following month, including the fraud account of Sintex BAPL, in an effort to recover more than Rs746 crore. In an auction scheduled for November 4th, SBI will offer NPAs for sale to banks, non-banking financial institutions (NBFCs), asset reconstruction companies (ARCs), and financial institutions (FIs).

Accounts from Surat Hazira NH6 Tollway Pvt Ltd (exposure of Rs335.54 crore), Sintex BAPL (outstanding of Rs197.74 crore), and Shreebhav Polyweaves Pvt Ltd (Rs20.20 crore) will be auctioned off as part of the NPA auction.

SBI indicated that in this instance, only ARCs are eligible for the e-auction because Sintex BAPL is a fraud account. The unpaid sum of Rs197.74 crore against the corporation includes bank guarantees of Rs6.10 crore. The company’s primary line of business is producing injection-molded plastic parts for the automotive industry.

The promoters/company/guarantors or any of their affiliated parties should not fund and support the proposed acquisition of these properties, according to SBI.

On October 31, three accounts will be offered for e-auction: Ashok Magnetics Ltd (formerly AML Steels), which has a loan outstanding of Rs23.82 crore; VVF India Ltd, which has a loan outstanding of Rs154.37 crore; and Agarwalas Polytrade (Rs15.03 crore).

The lender stated in the bid document that it “reserves the right to not proceed with the proposed transaction or amend any terms and conditions at any point, without assigning any cause.”

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