By Express News Service
NEW DELHI: Punjab National Bank (PNB), which has posted a net loss of Rs 12,282 crore following a Rs 14,000 crore fraud committed by diamantaire Nirav Modi and associates, has invited bids for sale of its three Non-Performing Assets (NPA) to recover Rs 136 crore from the borrowers.
“We intend to place these accounts for sale to ARCs/ NBFCs/other banks/FIs on the terms and conditions stipulated in the bank’s policy, in line with the regulatory guidelines,” PNB said in its invite for expression.
The three NPAs that have been put on sale are: Gwalior Jhansi Expressways with an outstanding loan amount of Rs 55 crore, SVS Buildcon Pvt Ltd of Rs 50 crore and Shiva Texfabs Ltd of Rs 31 crore.
This is not the first time the bank is bidding for recovery of bad loans. In April too, it had floated similar bids to sell three NPA accounts, namely Shree Sidhbali Ispat Ltd (Meerut) with a non-performing loan of Rs 165 crore, Sri Guruprabha Power Ltd (Chennai) Rs 3,152 crore and Dharamnath Investment (Mumbai) Rs 17.63 crore.
According to the bank, the e-bidding for the sale of these accounts will happen on July 7.
Apart from referring potential NPA cases to the Insolvency and Bankturty Code, the banks are also selling off their non-core assets to improve their balance sheets.
The NPA in the banking sector stood at Rs 8.31 trillion as of December 2017.
Out of the 21 state-owned banks, only two — Indian Bank and Vijaya Bank — posted profits during the fiscal ended March 31, 2018.