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MUMBAI : A group of lenders, including Bank of India, State Bank of India (SBI), Allahabad Bank and Dena Bank, is planning to jointly dispose of distressed loans amounting to over Rupee7,300 crore in the first half of next month, according to people aware of the development.
Bank of India has the largest chunk of loan, amounting to Rupee5,558 crore, which will be put on the block in early September, the persons cited earlier told ET.
Among others, SBI has invited bids for seven accounts amounting to Rupee383 crore, while Allahabad Bank has put on sale 48 accounts amounting to Rupee710 crore, and Dena Bank has put on the block 87 accounts amounting to Rupee658 crore.
The Indian banking system is saddled with bad loans which have resulted in huge losses.
Data compiled by ET Intelligence Group shows that for the quarter ended June 2018, 41 listed banks reported a combined loss of Rupee6,518 crore.
A year ago, their combined net profit stood at Rupee11,556 crore.
The losses were on account of provisions made for bad loans which, for all listed banks, rose to Rupee10.09 lakh crore in the quarter, as against Rupee8.3 lakh crore in the three months to June 2017.
Bank of India, which is facing prompt corrective action from the banking regulator, has called for bids for fRupee50 accounts, according to the persons cited earlier.
The bigger accounts in Bank of India’s list include Lavasa Corporation (Rupee327 crore), Sujana Metal (Rupee411.6 crore) and ISMT (Rupee423.7 crore).
The other known names include Liliput Kidswear (Rupee105 crore), Dighi Port, JBF Industries, Sakthi Sugars and Sujana Metals.
Power sector accounts on the block are Korba West Power (Rupee240 crore), Jyoti Power (Rupee187 crore) and Visa Power (Rupee146 crore).
