According to the bid document, the lender is offering non-performing loans of ₹514 crore owed by civil contractor Gammon India and ₹226 crore by Simbhaoli Sugars. It is also seeking to sell ₹94 crore of loans to Ranchi Expressways, along with smaller exposures to Shree Basaveshwar Sugars, D.H. Enterprises India and Bros Entertainment Shoppe.
On December 27, ET had reported that Punjab National Bank (PNB) invited bids from ARCs to sell bad loans worth ₹2,560 crore. Those accounts included ₹468 crore owed by Millennium Expressway, ₹390 crore by Aban Offshore, ₹314 crore by Gupta Power and Infrastructure, and ₹236 crore by Moser Baer, in addition to about 20 other corporate loan accounts.
The move marks a relatively rare instance in recent times of a bank offering corporate loan accounts for sale, as lenders have largely been prioritising the disposal of retail and microfinance portfolios.
In an interview in August, PNB managing director and chief executive Ashok Chandra said the bank had identified over 100 non-performing accounts with an aggregate value of ₹4,000-5,000 crore for sale to ARCs. “We expect to recover something in the range of 40-50%, minimum,” Chandra had told PTI.