Markets

SBI to sell 3 bad loan accounts to recover Rs 2,111 crore dues

New Delhi: India's largest lender 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 December 13 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.

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

Gross non-performing assets (NPA) of the bank rose to 9.95 per cent of gross advances as on September 30, from 9.83 per cent a year ago.

Net NPAs stood at 4.84 per cent of net advances, up from 4.53 per cent.

The bank recorded a 69 per cent decline in consolidated net profit at 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 July-September of 2017-18.

Original Article