India's largest lender, State Bank of India, has released a list of 331 corporate accounts, amounting to over Rs 96,000 crore in bad debts, for sale to interested buyers. Through the list, the lender is seeking to gauge interest for these loan accounts, two people with direct knowledge of the matter said.
While the bank has circulated this list among asset reconstruction companies and other distressed asset buyers, it is unlikely to sell all of these loans, the people quoted above said on the condition of anonymity.
The Economic Times newspaper first reported on the list on Monday.
While Rs 96,000 crore is the approximate book value of these assets, the net asset value could be significantly lower, depending on the nature of provisioning, the vintage of the account, and the complexity of recovery involved, the people quoted above said.
The accounts largely consist of bad loans where the accounts are in various stages of recovery, including the Insolvency and Bankruptcy Code. The single largest corporate account on the list is that of telecom network provider Aircel Ltd. This account includes debt worth Rs 6,978 crore owed to SBI.
The list also includes VOVL Ltd., which is Videocon Group's oil venture and owes Rs 5,091 crore to SBI. Videocon Industries Ltd., which owed Rs 3,405 crore to the lender, also features on the list.
Manoj Gaur's Jaiprakash Associates Ltd, where SBI had an exposure 4,506.43 crore is also one of the top accounts listed, the people quoted above said. Other major accounts include the Future Group companies, where the outstanding exposure for SBI stood at Rs 2,556 crore.
As of June 30, SBI's gross non-performing assets were Rs 91,328 crore, while advances under the collection account were Rs 1.76 lakh crore. AUCA includes bad loans that have been fully provided for but are still eligible for recovery actions by the lender.
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