Nilachal Iron company to be auctioned on Nov 22

Jamshedpur, Kolhan No Comments on Nilachal Iron company to be auctioned on Nov 22 40

SBI looking to recover Rs 1,019 crore with sale of 11 NPA accounts

Jamshedpur: SBI has put up 11 non-performing assets (NPAs) for sale to ARCs and financial companies to recover dues of nearly Rs 1,019 crore. Kandra-based Nilachal Iron & Power Ltd is one of these companies who will be sold through e-auction on 22nd November, sources said.

“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 ARCs/ Banks/ NBFCs/ FIs,” SBI said in an auction notice on its website.

Of these 11 accounts, Janki Corp Ltd has the highest outstanding dues of Rs 592.53 crore.

Among others, Venus Remedies Ltd has to repay Rs 83.01 crore, SBS Transpole Logistics Pvt Ltd Rs 63.36 crore, R S Luth Education Trust Rs 60.62 crore, Nilachal Iron & Power Ltd Rs 52.41 crore and Sri Balmukund Polyplast Rs 50.12 crore. The rest of the five companies owe the bank the remaining Rs 117 crore.

The interested asset reconstruction companies (ARCs)/ banks/ non-banking financial companies (NBFCs)/ financial institutions (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, State Bank of India (SBI) said.

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

SBI’s gross NPAs rose to 10.69 per cent of the total advances at the end of the first quarter ended June this fiscal year, as against 9.97 per cent a year ago.
In value terms, they increased to Rs 2,12,840 crore, from Rs 1,88,068 crore.
SBI has reported a hefty loss of Rs 4,876 crore for the June quarter due to higher NPAs or bad loans.

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