SBI plans to sell Essar Steel's NPAs worth over Rs 15,000 cr to recover dues

SBI plans to sell over Rs 15,000 crore worth bad loans belonging to Essar Steel to recover its dues from the debt-laden steel maker.

"State Bank of India (SBI) invites expression of interest (EoI) from banks/ARCs/NBFCs/FIs for the proposed sale of its non performing financial asset with total dues of Rs 15,431.44 crore," the bank said in an advertisement.

The lender has put the reserve price for the recovery of bad loans from Essar Steel India at Rs 9,587.64 crore.

SBI said the resolution plan for the recovery of non-performing asset (NPA) has been approved and filed in NCLT Ahmedabad, according to which the minimum recovery to the bank is Rs 11,313.42 crore.

SBI said the reserve price of over Rs 9,587 crore is on the basis of net present value (NPV) of minimum recovery discounted at 18 per cent with a time factor of one year.

SBI has asked the interested ARCs/ banks/ NBFCs/ financial institutions (FIs) that they can conduct due diligence of the asset with immediate effect, after ...