State-owned State Bank of India (SBI) and Oriental Bank of Commerce (OBC) have put on sale various financial accounts to recover dues of about £574 million. SBI has invited bids from asset reconstruction companies (ARCs) and financial institutions (FIs) to recover an outstanding of £497.5 million.
The bulk of accounts up for sale by SBI are of small and medium enterprises (SMEs) that have dues of £466.7 million. OBC wants to sell 13 accounts with a collective outstanding of £76.44 million, according to the bid document placed on its website. As many as 281 SME accounts are up for sale by SBI, belonging to those firms that have dues of up to £5 million. The collective dues on these SMEs are £466.65 million. “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,” SBI said in an auction notice.
SBI will also sell three accounts - Dennis Steels Pvt. Ltd. with outstanding of £25.87 million, Shiva Speciality Yarns (£3.79 million) and Bansidhar Spinning & Weaving Mills Ltd. (£1.17 million). Among the major loan accounts invited for sale by OBC are Mittal Corp Ltd. (£20.72 million), Jayaswal Neco Industries Ltd. (£15.7 million) and NCS Sugars Ltd. (£10.66 million).
E-bidding for State Bank of India accounts will take place on February 27. For Oriental, e-bidding is scheduled for February 25.
