Central Bank of India on Friday put up two non-performing assets (NPAs) worth Rs 251 crore for sale through the Swiss challenge method.
The bank’s exposures to Srinagar Banihal Expressway (Rs 200 crore) and Maa Mahamaya Industries (Rs 51 crore) are being offered on a 100 per cent cash basis. The reserve price for Srinagar Banihal Expressway has been set at Rs 146 crore, implying a 27 per cent haircut on the outstanding, while at Rs 34 crore, the reserve price for Maa Mahamaya suggests Central Bank may take a 34 per cent haircut.
“The auction for above account(s) is through ‘Swiss Challenge Method’, under Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 on without recourse basis based on an existing offer of firm bid from an investor, who will have the right to match the highest bid,” the lender said in bid documents for both accounts.
Ratings agency Icra had downgraded debt instruments worth Rs 1,440 crore for Srinagar Banihal Expressway and worth Rs 455 crore for Maa Mahamaya Industries in 2018. In March, the bank had put on the block stressed assets worth Rs 3,322 crore, including its exposure to Essar Steel India, Bhushan Power & Steel and Alok Industries. FE