PNB puts up NPA account of Burnpur Cement on sale to recover over Rs 50 cr

State-owned Punjab National Bank (PNB) has put up for sale the account of loss-making Burnpur Cement of West Bengal and has invited bids from Asset Reconstruction Companies (ARCs) to recover loan outstanding of over Rs 50 crore.

Placing the Non-Performing Account (NPA) on sale, PNB said the company owes Rs 50.18 crore as loan. The lender has put the reserve price for the sale of the account to ARCs/permitted transferees at Rs 20 crore.

PNB said it will bring copies of all documents at one place for the verification of the prospective buyer to expedite the process of due diligence.

Bank at its sole discretion may withdraw the account offered for sale, without assigning any reasons, it added.

The bidding process will be conducted on PNB's e-auction portal on July 16, 2022.

Burnpur Cement has accumulated loss of over Rs 58.97 crore resulting in erosion of net worth of the company. The net worth of the company is negative at (-) Rs 282.03 crore.