In a bid to recover dues worth Rs 5,740 crore public sector lender State Bank of India (SBI) and Oriental Bank of Commerce (OBC) have put its various financial accounts on sale.
India’s largest lender SBI has also called bids from Asset Reconstruction Companies (ARCs) and financial institutions (FIs) for recovering an outstanding of Rs 4,975 crore.
The accounts initiated for sale by SBI belongs to small and medium enterprises (SMEs) that have dues amounting to Rs 4,667 crore.
State-owned lender OBC plans to sell 13 accounts with a collective outstanding of Rs 764.44 crore, as revealed by 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 Rs 50 crore. The collective dues on these SMEs are Rs 4,666.50 crore.
“In terms of the bank’s policy on the 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 sell three accounts namely Dennis Steels Pvt Ltd with outstanding of Rs 258.73 crore, Shiva Speciality Yarns (Rs 37.90 crore) and Bansidhar Spinning & Weaving Mills Ltd (Rs 11.73 crore).
