(FE)
Three public sector banks (PSBs) —Punjab National Bank (PNB), Andhra Bank and United Bank of India (UBI) — have put non-performing assets (NPAs) worth Rs 4,441 crore up for sale as the 15-day deadline to resolve such accounts comes closer.
As per the Reserve Bank of India’s (RBI) February 12 circular, NPA accounts in which banks have an exposure of Rs 2,000 crore or more must be referred to the insolvency courts unless they were resolved by August 27. The circular gives banks another 15 days to move to the court. PNB has put on sale 21 accounts with an outstanding of Rs 1,320 crore, of which the largest are Moser Baer Solar, with an outstanding of Rs 233 crore, Divine Alloys & Power Co (Rs 201 crore) and Divine Vidyut (Rs 133 crore). Bids have been invited on both cash basis and as a mix of cash and security receipts (SRs) for most accounts. Seven of them are being offered on a 100% cash basis.
