SBI plans to sell Essar Steel’s NPAs worth over Rs 15k cr

“State Bank of India (SBI) invites expression of interest (EoI) from banks/ARCs/NBFCs/FIs for the proposed sale of its non-performing financial asset with total dues of Rs 15,431.44 crore,” the bank said in an advertisement. The lender has put the reserve price for the recovery of bad loans from Essar Steel India at Rs 9,587.64 crore. SBI said the resolution plan for the recovery of non-performing asset (NPA) has been approved and filed in NCLT Ahmedabad, according to which the minimum recovery to the bank is Rs 11,313.42 crore.

SBI said the reserve price of over Rs 9,587 crore is based on net present value (NPV) of minimum recovery discounted at 18 per cent with a time factor of one year. BI has asked the interested ARCs/ banks/ NBFCs/ financial institutions (FIs) that they can conduct due diligence of the asset with immediate effect, after submitting EoI and executing a Non-Disclosure Agreement (NDA) with the bank. The sale of the NPA account is to happen through e-auction on January 30, as per the bid invite.

In September last year, SBI had withdrawn the process of sale of debt of Essar Steel to asset reconstruction companies (ARCs).