State Bank of India will auction non-performing assets (NPAs) worth Rs 700 crore this month to recover its dues. There will be three auctions in the month and the total amount outstanding is Rs 700.34 crore, according to SBI's auction plan.
Ludhiana-based Regency Aqua Electro & Hotel Resorts Pvt Ltd and Kolkata-based Lovely International Pvt Ltd will be auctioned on November 18, while on November 29, the e-auction of Sankalp Engineering & Pvt Ltd and Anjanay Rice Mill Pvt Ltd will take place, among others.
On November 7, the e-auction of Bhopal-based Bhatia Global Trading Limited (BGTL), which has dues of Rs 177 crore, will take place. It will be among several other assets scheduled to be auctioned that day.
According to SBI's revised Policy on Sale of Financial Assets, SBI places accounts "for sale to ARCs/ Banks/ NBFCs/ FIs on the terms and conditions indicated there against", it said.
All these accounts are to be auctioned under "Swiss Challenge Method", based on an existing offer in hand, who will have the right to match the highest bid.
SBI's fresh slippages nearly halved to Rs 8,800 crore in the quarter ended September 30 compared with Rs 16,000 crore in the previous quarter.
SBI's asset quality improved with the gross non-performing asset (NPA) ratio coming in at 7.19 per cent, down 276 bps yearly and 34 bps sequentially.
Net NPA ratio was at 2.79 per cent in the July-September period, down 28 bps compared with the previous quarter and 205 bps compared with the quarter ended September 30, 2018.
The bank was holding total provisions of Rs 22,399 crore as of September 30, which was 89.63 per cent of total outstanding.