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SBI to sell 487 bad loans worth Rs 1,000 crore to ARCs, financial institutions, say reports

SBI to sell 487 bad loans worth Rs 1,000 crore to ARCs, financial institutions, say reports

SBI to sell 487 bad loans worth Rs 1,000 crore to ARCs, financial institutions, say reports
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By CNBC-TV18 Feb 26, 2019 8:17:38 AM IST (Updated)

State Bank of India (SBI) has decided to sell 487 bad loans aggregating to an amount of Rs 1,000 crore in corporate, small and medium enterprises (SMEs) and housing space.

State Bank of India (SBI) has decided to sell 487 bad loans aggregating to an amount of Rs 1,000 crore to asset reconstruction companies (ARCs), other banks and financial institutions, LiveMint reported citing a bank notice. These loans are mainly from the corporate, small and medium enterprises (SMEs) and housing space.

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Furthermore, these loans will be sold on a full-cash basis rather than the regular practice of 15 percent cash and rest in security receipts, the report said.
Sravanthi Energy (exposure of Rs 177 crore), Burnpur Cement (Rs 133 crore) and Rana Iron and Steel (Rs 97 crore) are amongst the large accounts listed by SBI, according to the report. Moreover, the bank has existing offers for these three major accounts where bidders will have the right to match the highest bid, said LiveMint.
Other accounts that are also up for sale include VS Lignite Power, a part of KSK Energy Ventures, which has an exposure in SBI of about Rs 98 crore.
LiveMint also added, " The bank will put more assets on sale in the coming months to recover from defaulters."
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