SBI seeks buyers for bad loans
Mumbai: The State Bank of India (SBI), the country's largest lender, has put up for sale 15 NPA accounts worth almost Rs 989 crore to asset reconstruction companies, banks and others. These include the UP-based Simbhaoli Sugars, which owes Rs 158.57 crore to the lender.
"SBI invites expression of interest from banks/asset reconstruction companies/ NBFCs/FIs for the proposed sale of 15 non-performing assets (NPAs) with principal outstanding of Rs 988.95 crore," a bid document published by the bank on Wednesday said.
Some of the other NPA accounts that feature on the list include Aksha Gold Ornaments, KBJ Jewels Industry India and KBJ Hotel Varanasi with a combined outstanding of Rs 164.30 crore.
Shri Jalaram Rice Industries has turned into an NPA account with principal of Rs 127.05 crore, while MCL Global Steel has an outstanding loan of Rs 100.18 crore, the document showed.
Eight companies based in Gujarat got loans in the range of Rs 5.90-63.39 crore from the bank which have now become NPA accounts. The SBI said the sale will be subject to the final approval by "competent authority" of the bank.
The PSU lender has asked the bidders to submit expression of interest by March 9, 2018 and to complete the due diligence by March 22. The process of e-bidding will take place on March 23.
The bank said it will complete all the formalities in the shortest possible time once the deal is finalised.
The bid document also showed that Simbhaoli Sugars and MCL Global Steel of Madhya Pradesh have put nothing as collateral to get the loans.
Simbhaoli Sugars, which owes Rs 97.85 crore to Oriental Bank of Commerce, turned into an NPA account in 2015. The CBI is examining the case against Simbhaoli, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others.
The Reserve Bank has slapped a penalty of Rs 40 lakh on the SBI for not complying with its directions on the detection and impounding of counterfeit notes.
"The Reserve Bank of India (RBI) has imposed, on March 01, 2018, a monetary penalty of Rs 4 million on State Bank of India for non-compliance with the directions issued by RBI on Detection and Impounding of Counterfeit Notes," the RBI said in a notification issued Wednesday.
The RBI said it found deficiencies on SBI's part in regulatory compliance with counterfeit notes regulations. The penal action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, RBI added.
The regulator had carried out inspection of currency chests of two branches of the lender and noticed violation of its instructions issued on the detection and impounding of counterfeit notes.