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SBI seeks bids to sell 11 NPAs worth 4.66 bln rupees

MUMBAI: State Bank of India has sought bids to sell 11 non-performing loan accounts with outstanding of 4.66 bln rupees, the lender said in a notice on its website.

The state-owned lender has invited bids from banks, asset reconstruction companies, non-banking finance companies, and other eligible financial institutions. Bidders have to submit expressions of interest by Friday and complete due diligence by Nov 6.

The e-bidding process for the proposed sale will be held on Nov 7.

The accounts put on the block include loans extended to Bhatia Global Trading Ltd with an outstanding of 1.77 bln rupees, and Bhatia Coke & Energy Ltd with an outstanding of 1.04 bln rupees.

In Jul-Sep, the state-owned lender had put non-performing loans worth over 12.6 bln rupees on the block. Most state-owned banks have been looking to sell bad loans to shore up capital and improve non-performing asset ratio.

As on Jun 30, SBI's gross non-performing asset ratio was 7.53%, unchanged from the previous quarter, and 10.69% a year ago. The net non-performing asset ratio was 3.07% as on Jun 30, 3.01% a quarter ago, and 5.29% a year ago.

At 1133 IST, shares of the lender were up 0.6% at 257.05 rupees on the National Stock Exchange.