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SBI set to put up 6 more NPAs worth Rs 2,300 cr on sale

Shalini Sharma

The lender said on its website that except Mittal Corp and Shree Vaishnav, all the other auctions will happen under the Swiss Challenge method New Delhi: A week after putting up six non-performing accounts worth Rs 1,307.27 crore on sale, State Bank of India (SBI) is now ready to put six more accounts on the block. The latest tranche of non-performing assets are worth Rs 2,337.88 crore and will be auctioned on March 26. The bank is looking to sell these accounts to banks, ARCs, NBFCs and other financial institutions, on a 100 percent cash basis, an auction notice on SBI’s website said on Tuesday.

What’s on offer?

The accounts are Indian Steel Corporation (outstanding debt Rs 928.88 crore), Jai Balaji IndustriesNSE 4.96 % (Rs 859.33 crore), Kohinoor Planet Construction (Rs 207.77 crore), Mittal Corp (Rs 116.34 crore), MCL Global Steel (Rs 100.18 crore), Shree Vaishnav Ispat (Rs 82.52 crore) and Gati Infrastructure (Rs 42.86 crore). The lender said on its website that except Mittal Corp and Shree Vaishnav, all the other auctions will happen under the Swiss Challenge method.

EOIs to be submitted by March 26

Interested entities are expected to submit an Expression of Interest by March 16, along with a non-disclosure agreement. The due diligence exercise will be wrapped up by March 25 and the bidding will take place on March 26. Last week, the bank had placed six other NPA accounts worth Rs 1,307.27 crore on the shelf — Parental Drugs (Rs 429.72 crore), Kamachi Industries (Rs 365.68 crore), Jain Infraprojects (Rs 361.55 crore), MPK Ispat, MPK Steel and MPK Metals (Rs 53.86 crore), Balmukund Polyplast (Rs 50.12 crore) and Martina Biogenics (Rs 46.34 crore).