Punjab & Sind Bank plans to sell Rs 403 cr bad loans in nine accounts

State-owned Punjab & Sind Bank seeks bids from asset reconstruction companies (ARCs) and other eligible entities to sell Rs 403.62 crore of non-performing loans across nine accounts, with a cumulative reserve price of Rs 370 crore, translating into a recovery of around 91% for the bank.

The nine 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, and Star Bazar Group of accounts.

 Of the total nine accounts put up for sale by the lender, two accounts — Diksha Greens and Star Bazar Group — have been classified as “fraud” accounts, and only ARCs can bid for these accounts.

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The sale of financial assets is being considered by the bank as a commercial decision and shall have no bearing whatsoever on the ongoing criminal case/investigation, if any, being carried out by the Central Bureau of Investigation (CBI)/Police/any other agency, and the same shall proceed as per law, the state-owned lender said in an auction document.

The bank has sought expressions of interest (EoIs) from entities interested in acquiring the accounts put up for sale by November 25. The lender will also conduct counter-bidding under the Swiss challenge method, using the highest offer price received as the “Anchor Bid.

The date of the auction and further process to be followed under the Swiss challenge method will be communicated in the future, the bank said.

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