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Bank of Baroda to sell 46 NPA accounts to recover dues worth Rs 597 cr

The lender, in a notification, said it intends to sell these NPA accounts to asset reconstruction companies (ARCs) / banks/NBFCs or other financial institutions (FIs) on 100% cash basis

twitter-logoPTI | June 9, 2021 | Updated 13:16 IST
Bank of Baroda to sell 46 NPA accounts to recover dues worth Rs 597 cr

State-owned Bank of Baroda will conduct an e-auction of as many as 46 NPA accounts later this month to recover dues of Rs 597.41 crore. The lender, in a notification, said it intends to sell these NPA accounts to asset reconstruction companies (ARCs) / banks / NBFCs or other financial institutions (FIs) on 100 per cent cash basis, for which the e-auction will take place on June 21, 2021.

The major NPA accounts put up for sale include Meena Jewels Export & Meena Jewellers Export (Rs 60.76 crore); Crystal Cable Industries (Rs 57.49 crore); J R Foods Ltd (Rs 41.60 crore); Shree Raghuvanshi Fibres (Rs 27.38 crore); Kaneri Agro Industries (Rs 24.69 crore); Man Tubinox (Rs 24.28 crore) and Aryans Educational and Charitable Trust (Rs 20.79 crore).

The last date for submission of expression of interest is June 19, the bank said, adding the completion of due diligence will take place on the same day. "E-bidding timings will be from 11.30 AM to 12.30 PM with unlimited extension of 5 minutes in case the amount is increased by the bidders. The incremental amount shall be in multiple of Rs 10 lakh," Bank of Baroda said.

With respect to Chennai-based Rahima Leather Exports against which there is an outstanding of Rs 9.13 crore, Bank of Baroda said it has received an ECGC claim of Rs 1.18 crore. This account will be retained by the bank and not be passed on to ARC/NBFC/bank/FIs, it said.

Bidder will also have to give an affidavit that they are "in no way connected to or acting on behalf of or in concert or on behalf of any of the accounts or its promoters, including promoter's family", as per the provisions of Insolvency and Bankruptcy Code (IBC), 2016, it said.

The bank said any ECGC/CGTMSE claim received or to be received in any of the accounts under the sale will be retained by it and will not be passed on to ARCs/ banks/ NBFCs/ FIs. The Export Credit Guarantee Corporation (ECGC) is a government owned body which provides export credit insurance support to Indian exporters.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a government owned trust which offers credit guarantee to financial institutions which give loans to the MSME sector.

Also read: SBI gets a foot in door of accounts aggregator biz with Cashfree investment

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