Rs 403 Crore NPA Loans: Punjab & Sind Bank, a state-owned financial institution, is actively inviting bids from Asset Reconstruction Companies (ARCs) and other qualified entities for the sale of non-performing loans (NPLs) totaling Rs 403.62 crore across nine borrower accounts. These accounts are being sold with a reserve price of Rs 370 crore, which would allow the bank to recover approximately 91% of the loans’ value.
Details of the Loan Accounts for Sale
The nine loan accounts involved in this sale include a variety of companies across sectors. Notably, these accounts include:
- Pioneer Gas Power
- Mora Tollways
- Gwalior Jhansi Expressways
- Ranchi Expressways
- Patil Construction and Infrastructure
- Valley Iron & Steel Co.
- 17 Miles Group of accounts
- Diksha Greens
- Star Bazar Group of accounts
Of these, the accounts of Diksha Greens and Star Bazar Group have been marked as “fraud” accounts. Only ARCs are eligible to bid on these fraud-designated accounts, as they involve complex legal proceedings and strict compliance requirements.
Bank’s Disclaimer on Fraud Accounts
Punjab & Sind Bank has clarified that this sale is a purely commercial decision and does not interfere with ongoing criminal investigations. Any ongoing legal actions, such as those by the Central Bureau of Investigation (CBI), police, or other agencies, will continue unaffected by this sale process.
Bidding Process and the Swiss Challenge Method
Interested parties are required to submit their Expressions of Interest (EoIs) by November 25. Once bids are received, the bank will initiate a “Swiss challenge” auction process. In this method:
- The highest offer received for the assets will be established as the “Anchor Bid.”
- Counter-bids will then be invited, allowing other bidders to potentially offer a higher price than the anchor bid.
The bank will announce the auction date and additional steps for the Swiss challenge process following the EoI deadline.
By selling these assets, Punjab & Sind Bank aims to reduce its burden of bad loans and improve its financial position while focusing on recovery through a structured bidding process.
