The country’s third-largest bank - Bank of Baroda decided to recover dues worth Rs. 597 crore by selling as many as 46 NPA accounts. It will conduct an e-auction of these 46 NPA accounts later this month to recover heavy dues of Rs 597.41 crore. The lender, in a notification, said it intends to sell these NPA accounts to asset reconstruction companies (ARCs) / banks / NBFCs or other financial institutions on a 100 per cent cash basis, for which the e-auction will take place on 21 June 2021.
The major NPA accounts put up for sale include Meena Jewels Export & Meena Jewellers Export (Rs. 60.76 crore); Crystal Cable Industries (Rs. 57.49 crore); J. R. Foods Ltd. (Rs. 41.60 crore); Shree Raghuvanshi Fibres (Rs. 27.38 crore); Kaneri Agro Industries (Rs. 24.69 crore); Man Tubinox (Rs. 24.28 crore) and Aryans Educational and Charitable Trust (Rs. 20.79 crore).
The last date for submission of expression of interest (EOI) is 19 June 2021. Adding the completion of due diligence will take place on the same day. "E-bidding timings will be from 11.30 AM to 12.30 PM with an unlimited extension of 5 minutes in case the amount is increased by the bidders. The incremental amount shall be in multiples of Rs. 10 lakh," Bank of Baroda said.
Bidder will also 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 per the provisions of Insolvency and Bankruptcy Code (IBC), 2016, it said.
Any ECGC/CGTMSE claim received or to be received in any of the accounts under the sale will be retained by it and will not be passed on to ARCs/ banks/ NBFCs/ FIs, the BoB told. The Export Credit Guarantee Corporation (ECGC) is a government-owned body that provides export credit insurance support to Indian exporters. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a government-owned trust which offers credit guarantee to financial institutions which give loans to the MSME sector.