Bank of Baroda puts bad loans worth over ₹9,000 crore on the block

Source:- thehindubusinessline.com

Bank of Baroda   –  REUTERS

As resolution through the insolvency courts keep getting delayed inordinately, the State-run Bank of Baroda has put on sale non-performing loans amounting to ₹9,060 crore, including two large accounts — Bhushan Power & Steel and Alok Industries which are undergoing a protracted insolvency process.

While Bhushan Power & Steel dues amount to ₹2,099 crore, Alok Industries dues are ₹903 crore.

Both these companies are among the 12 largest stressed accounts which the Reserve Bank had asked banks to refer to National Company Law Tribunals for resolution in June 2017 and forms the first list put out by the monetary authority in the mid-2016.

The third largest lender had put Bhushan Power & Steel on sale in December 2018 but could not find a buyer. The bank is also looking to sell 65 other medium and small-size stressed accounts worth ₹6,057 crore, on cash basis, according to the information on the bank’s website.

Some of the big accounts are Lanco Vidarbha Thermal Power (₹628 crore dues), Jindal India Thermal Power (₹417 crore), ISMT (₹373 crore), Anrak Aluminium (₹306 crore), GVK Power Govindwal Sahib (₹266 crore), ECI Engineering Construction Company (₹207 crore), Lanco Solar (₹160 crore), Visa Steel (₹150 crore) and Adhunik Power & Natural Resources (₹58 crore), among others.

The bank has invited expressions of interest for these accounts over the past weekend. The EoIs for Bhushan Power & Steel and Alok Industries are to be submitted by June 24 and for the other accounts by June 21.