State-owned Bank of Baroda (BoB) plans to sell a series of non-performing assets (NPAs) totalling ₹5,929 crore, including ₹1,839 crore owed by debt-ridden telecom company Reliance Communications, on cash basis.
A ₹262-crore NPA in Asian Colour Coated Ispat, ₹200 crore in Monnet Power, ₹143 crore in Sinhgad Technical Education Society, and ₹266 crore in GVK Power Goindwal Sahib, are among the others.
The lender intends to sell the debt in a total of 49 companies to raise ₹5,929 crore, according to documents reviewed by
GVK Gautami Power (₹91 crore), Golden Jubilee Hotels (₹134.26 crore), Surat Hazira NH6 Tollways (₹100.17 crore), SBQ Steels (₹177.17 crore) and Spanco (₹86.30 crore) are among the major debtors’ assets BoB intends to sell.
The bank has called for an Expression of Interest (EoI) and sought interested Asset Reconstruction Companies (ARC), banks, non-banking financial institutions, and financial institutions to conduct due diligence. The bank has also sought a non-disclosure agreement (NDA) from interested parties, the documents reveal.
The EoI should comprise an indicative price, terms and conditions and tentative period of settlement (if any), among others, it said, adding that March 7 is the deadline for the EoIs.
“The bank shall retain pari-passu charge on securities relating to unsecuritised non-funded facilities. In case of crystalisation of non-funded facilities after the sale, the portion (converted into funded) will also be sold by the bank to the same ARC, it added.
The bank intends to go in for an e-auction after fixing a minimum reserve price. However, the sale of these assets is subject to final approval of the bank’s board. BoB’s gross NPAs declined to 11.01 per cent of gross advances as of December-end 2018, against 11.78 per cent as of September-end 2018.