State Bank of India has invited bids to sell non-performing loans, aggregating ₹6.97 bln, of Visa Steel Ltd, the bank said in a notice on its website.
Banks, non-banking finance companies, asset reconstruction firms, and other financial institutions were invited to submit bids by the lender.
Expressions of interest must be sent by today, and the due diligence must be finished by February 9. On February 10, there will be an online bidding process.
The account is being offered on a 100% cash basis, with a reserve price of 2.30 bln rupees.
SBI had requested bids to liquidate the Visa Steel account along with other NPAs in January 2021. Visa Steel was later taken off the list for the online auction by the state-owned bank for administrative reasons.
A claim against Visa Steel was accepted in November by the National Company Law Appellate Tribunal’s Cuttack bench.
So far in January, SBI has solicited bids for the sale of three non-performing loans totaling 881 million rupees.
To increase capital and lower non-performing asset ratios, the majority of state-owned banks have been looking to offload bad loans.
The gross non-performing asset ratio for SBI as of September 30 was 3.52%, down from 3.91% a quarter earlier and 4.90% a year earlier. The ratio of net non-performing assets was 0.80%, down from 1.52% a year earlier and 1.00% a quarter earlier.