Money & Banking

Punjab National Bank puts 6 NPAs worth over ₹1,000 crore on block

PTI New Delhi | Updated on June 16, 2019 Published on June 16, 2019

Punjab National Bank was hit by a massive ₹14,000-crore scam allegedly perpetrated by jewellers Nirav Modi and Mehul Choksi   -  Danish Siddiqui

Reserve price fixed at ₹342 cr; bids to be accepted till June 26

State-owned Punjab National Bank has put on sale six non-performing loans amounting to over ₹1,000 crore, including two accounts of Vandana Vidyut and Visa Steel.

Asset reconstruction companies (ARCs), non-banking financial companies (NBFCs), other banks and financial institutions can submit binding bids till June 26. The bids will be opened on the following day.

“We intend to place the (six accounts) for sale to ARCs/NBFCs/Other Banks/FIs etc,” said a notice put up by PNB.

The reserve price for the six non-performing assets (NPAs) has been fixed at ₹342 crore.

Bhopal-based Vandana Vidyut Steel owes ₹454.02 crore, while Kolkata located Visa Steel has an outstanding balance of ₹443.76 crore.

The rest four NPAs — Temptation Foods, Helios Photovoltaic, Cabcom Cables, and Zoom Vallabh Steel — are Delhi-based.

The sale process is to be handled by the Stressed Assets Targeted Resolution Action (SASTRA) Division of the bank. The submission of financial bids will be only through e-auction method, which will take place on the portal of the bank, it said.

Punjab National Bank (PNB), which was hit by a massive ₹14,000-crore scam allegedly perpetrated by jeweller duo Nirav Modi and Mehul Choksi, has enhanced its recovery mechanism by forming the Stressed Asset Management Vertical (SAMV) and SASTRA.

It is also looking to raise ₹10,000 crore in 2019-20 from sale of non-core assets, rights issue and expected write-backs from two large accounts undergoing insolvency proceedings.

For the full fiscal 2018-19, the bank’s consolidated net loss was at ₹9,570.11 crore, as against a loss of ₹12,113.36 crore during 2017-18.

Published on June 16, 2019
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