PNB Puts Bad Loans Worth Rs 295 Crore For Sale
Government-owned Punjab National Bank (PNB) will put on sale four bad assets worth Rs 295 crore in a move to shed non-performing assets from its books.
Last week, PNB Managing Director Usha Ananthasubramanian said the bank has identified assets worth Rs 1,800 crore that will be sold by month-end to recover bad loans.
The reserve price has been fixed at Rs 194.79 crore on cash basis while on security receipt (SR) basis, it is Rs 216.43 crore.
"We intend to place four accounts for sale to asset reconstruction companies/non-banking finance companies/other banks/financial institutions. The sale will be subject to final approval by the Competent Authority," a PNB notice said.
The interested parties are required to evince their interest by March 7, it said, adding that submission of financial bid will be through e-auction to be held March 17 on bank website.
The highest non-performing asset of Rs 111.76 crore belongs to Ahmednagar-based loss making Indian made foreign liquor maker Tilaknagar Industries Ltd. Other accounts include Rs 100.16 crore from Mumbai-based Om Shiv Estate Pvt.; Rs 56.64 crore from Bilcare Ltd. and Rs 26.23 crore from Anand Distilleries Pvt.
Selling of bad loans to assets reconstruction companies, non-banking financial companies, other banks or financial institutions is pertinent for PNB whose gross non-performing assets stood Rs 55,627.51 crore as on December 31, 2016.
In 2015-16, PNB posted net loss of Rs 3,974.39 crore due to high level of stressed assets as well as stringent RBI rules that required higher allocation to cover bad loans.
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