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At least four major public sector banks sold nearly 7,500 crore of non-performing badets to badet reconstruction companies and other financial institutions.
Lenders State Bank of India (SBI), Bank of Baroda, Dena Bank and Andhra Bank have decided to sell a large part of their exposures to the NPA to accounts in the process of resolution in various jurisdictions of the United States. ;insolvency.
"We hope to recover a large portion of these cash-based badets. It also helps us avoid resolution delays due to excessive litigation, "said the head of a large public sector bank.
On November 20, the Bank of Baroda listed 35 bad debt accounts valued at 4,237 crores for sale on its website, including Jindal India Thermal Power (crore 334.93 rupees), Rathi Steel & Power (crore 290.52 crores) and Rolta India (crore 287.38 rupees).
badets with immediate effect after expressing interest and signed a confidentiality agreement with the Bank, "said BoB on its website.
Similarly, Andhra State Bank has issued a call for tenders for the sale of its NPAs including 53 accounts. , with a main balance of 1,552.96 crores of rupees only on the basis of species. The electronic auction will take place on December 3rd. The bank will sign the transfer agreements and the transfer of funds by December 10th.
Dena Bank proposed the sale of 84 NPAs with a total value of 3,324 crores through an electronic auction process in November. 29.
The country's largest lender, SBI, had also put up for sale eleven suspicious credit accounts intended to be sold to financial centers and financial companies for the purpose of recovering debts of a closely related value. of Rs. 1,019,000.
badets on sale, but pricing continues to be a problem. However, with more cash deals and pressure for clean-up from the regulator, we were able to get a better price. They (the banks) also want to avoid the NCLT (National Company Law Tribunal) after the February 12 circular from the Reserve Bank of India (RBI). As a result, they are putting more badets on sale, "said the head of a major control center.
The circular asks all lenders to ask all borrower accounts to settle under the Insolvency and Bankruptcy Code (IBC) if the recovery has not occurred. successful. contracted within 180 days of converting the loan into a NPA.
Banks and CRAs have been conducting difficult negotiations in recent years. Given the rush to recover loans and the increase in the supply of bad debts, banks are willing to accept more losses or write-downs of their loans than before to recover their cash immediately.
Asset Reconstruction Company (India), or Arcil, one of the three largest countries in the country, plans to acquire about 5,400 crore of bank badets. For that, he plans to raise 1,500 crores of additional rupees over the next six months.
During fiscal year 18, Arcil acquired approximately 2,700 crores of badets, just as the sector in that of the industry, rose to more than 20,000 crore said Pramod Gupta. Chief Financial Officer (CFO) of Arcil.
Arcil's Director General and General Manager, Vinayak Bahuguna, focused on distressed medium-sized retail badets, noting that some of his industrial badets were also examined selectively. "In the mid-sized business segment, we look at companies with debts of up to Rs 5,000 crores. We study projects in the fields of steel, textiles and roads, as well as in some stressed energy projects. "
In the second quarter, Bank of India had sold a total of 10,000 crore NPAs auctioned. Dinabandhu Mohapatra, CEO of the bank, said the management was negotiating resolutions for energy badets worth 3,000,000,000 rupees.
Up to March, cumulative estimates suggest that about one-third of bank bad debts were purchased by CRAs. As of September, banks have a significant number of APNs worth more than Rs. 10.50 million in their balance sheets, creating an opportunity for ARCs and domestic and foreign investors.
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