Business

SBI To Auction 12 NPAs To Recover Dues Worth Rs. 1,325 Crores

NEWS WORLD INDIA | 0
5439
| June 10 , 2018 , 15:32 IST

The State Bank of India(SBI) will be conducting an auction of it’s 12 non performing accounts (NPAs) by the end of this month to recover dues amounting to approximately 1325 crore rupees.

According to a notice issued by the bank, the auctions of these bad accounts will be taking place in later half of this month. The auction will be conducted online.

The public sector bank has reported a net loss worth Rs 7,718 crore in the fourth quarter that ended this March and of Rs 6,547 crore for the year 2017-18 due to higher provisioning for bad loans.

ALSO READ:  SBI Looks At Over Rs 40,000 Crore Recovery In Fy19

As per media reports, accounts under the radar are Nikhil Refineries (Rs 52.85 crore), Bhaskar Shrachi Alloys (Rs 51.48 crore), Sri Ganesh Sponge Iron Pvt Ltd (Rs 38.96 crore), Asmita Papers (Rs 37.23 crore), Forel Labs (Rs 22.86 crore), Karthik Agro Industries (Rs 20.82 crore) and Abhinandan Interexim (Rs 14.15 crore).

Ankit Metal & Power Ltd (Rs 690.08 crore), Modern Steels Ltd (Rs 122.61 crore), Good Health Agrotech Pvt Ltd (Rs 109.14 crore), Amit Cottons Pvt Ltd (Rs 84.70 crore), and Ind-Swift Ltd (Rs 80.49 crore) are the remaining accounts that would be auctioned.

The Reserve Bank’s revised framework has designated specified norms for early identification of stressed assets, a timeframe for implementation of resolution plans and a penalty on the bank that fails to adhere to the prescribed time limit.

These guidelines came after the regulator of the Indian banking sector threw off the previous strategies such as the Corporate Debt Restructuring Scheme, Strategic Debt Restructuring Scheme (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A).