Andhra Bank puts up Rs 1,553-cr NPAs for sale, would prefer cash bids

File photo Photograph:( Zee News Network )

PTI New Delhi, Delhi, India Nov 25, 2018, 11.43 AM (IST)

To make recovery of about Rs 1,553 crore, state-owned Andhra Bank has invited bids from asset reconstruction companies (ARCs) to sell non-performing assets of more than 50 accounts.

The bank has invited expressions of interest (EoIs) from ARCs for the sale of its non-performing assets (NPAs) by November 30, according to the tender document.

"Andhra Bank invites EoIs from ARCs for the proposed sale of its NPAs comprising 53 accounts with principal balance of Rs 1,552.96 crore on cash basis only," the bank said.

The state-owned lender said that the bids may be submitted for tranches and/or individual basis.

All ARCs that are registered as a securitisation and reconstruction company pursuant to Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFAESI Act), that have tendered their letters of interest and non-disclosure agreements pursuant to the notification of the bank are eligible to participate in the sale process subject to applicable regulations, it added.

The bank's major NPA accounts include Corporate Power Ltd at Rs 125.95 crore (total outstanding Rs 306.65 crore); Visa Steel Ltd Rs 128.71 (total Rs 211.76 crore); Tulsyan NEC Ltd Rs 106.44 crore (Rs 154.15 crore) and Corporate Ispat Alloys Ltd Rs 65.06 crore (Rs 147.86 crore).

A few others include Transstroy Dindigul-Theni-Kumli Tollways Rs 127.57 crore (total Rs 146.73 crore); Transstroy Krishnagiri Tindivanam Highways Pvt Ltd Rs 68.94 crore (Rs 102.72 crore); Barasat Krishnagar Expressways Rs 106.41 crore (Rs 128.66 crore) and ISMT Ltd Rs 85.74 crore (Rs 136.33 crore).

The e-bidding will take place on December 3, while the bank will execute the assignment agreements and fund transfer on or before December 10, 2018. PTI 

Story highlights

The bank has invited expressions of interest from asset reconstruction companies by November 30.