SBI puts up non-performing asset account MSP Metallics for sale

2021 0428 India 01

11 State Bank of India1SBI has put up for sale non-performing asset (NPA) account MSP Metallics Ltd against which a total of 10 banks have collective loan outstanding of over Rs 1,493 crore. State Bank of India (SBI) has the highest share of lending (37.19%) to MSP Metallics amounting to Rs 555.51 crore.

The other lenders to the company as part of the consortium arrangement are — Indian Bank (Rs 284.82 crore); Punjab National Bank (Rs 229.83 crore); UCO Bank (Rs 176.53 crore); Indian Overseas Bank (Rs 73.56 crore); Canara Bank (Rs 62.66 crore); Central Bank of India (Rs 41.91 crore); Union Bank of India (Rs 38.06 crore); Bank of Baroda (Rs 28.02 crore) and Bank of India (Rs 2.84 crore).

The total outstanding against all the 10 lenders stands at Rs 1,493.74 crore. The reserve price has been set at Rs 350 crore. “In terms of the bank’s policy on sale of financial assets, in line with the regulatory guidelines, we place the…accounts for sale to ARCs/ Banks/ NBFCs/ FIs, on the terms and conditions indicated there against,” SBI said in a sale notice on its website.

The e-auction for MSP Metallics account is to take place on May 4, 2021. SBI said the sale will be subject to final approval of the other banks who are part of the consortium lending. “The interested ARCs/banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting expression of interest and executing a Non-Disclosure Agreement (NDA) with the bank,” SBI said.

The sale is on ‘as is where is basis’. MSP Metallics runs an integrated steel plant at Marakuta, Jharsuguda district in Odisha.

New Indian Express

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