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Bank of Baroda To Sell 46 NPA Accounts To Recover Rs 597 Crore

Bank of Baroda To Sell 46 NPA Accounts To Recover Rs 597 Crore

In order to clean its bad assets, the state-owned Bank of Baroda (BoB) has announced that it will sell 46 non-performing assets (NPA) accounts to recover dues of Rs 597.41 crore.

In a notification dated June 4, the government lender said it intends to sell the 46 stressed accounts through e-auction on June 21. The bank said the NPA accounts will be sold to asset reconstruction companies (ARCs)/ banks/ Non-banking financial institutions (NBFCs) or other financial institutions (FIs) on a 100 percent cash basis.

Bank of Baroda said the last date for submission of expression of interest is June 19, and the due diligence will be completed the same day.

The lender said the bidding timings will be from 11:30 am to 12:30 pm, and bidders can have an unlimited extension of five minutes if the bid is increased in multiples of Rs 10 lakh.

The 46 NPA accounts include some big names like Meena Jewels Export & Meena Jewellers Export (dues worth Rs 60.76 crore), Crystal Cable Industries (Rs 57.49 crore), and J R Foods Ltd (Rs 41.60 crore).

To ensure that there are only genuine biddings, the bank said all the bidders 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 mentioned in the section 29a and other provisions of the Insolvency and Bankruptcy Code 2016.

The bank also informed that it has received an Export Credit Guarantee Scheme (ECGC) claim worth Rs 1.18 crore with respect to Rahima Leather Exports which owes the lender Rs 9.13 crore. The bank said the ECGC amount will not be passed on to the bidder, and the same will be applicable to any future ECGC or Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) claim to be received for any NPA account in the future.

https://www.bankofbaroda.in/announcement.htm

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first published:June 10, 2021, 11:29 IST