The largest lender in the country, State Bank of India (SBI) has put its entire loan of Rs 15,431 crores to Essar Steel on sale on 100 per cent cash basis. As per the auction notice uploaded on the SBI’s corporate website, the reserve price for the sale is set at Rs 9,588 crore
According to SBI statement, “The resolution plan has been approved and filed in NCLT Ahmedabad. As per the approved resolution plan of AMIPL, minimum recovery to SBI is Rs. 11313.42 cr. Reserve price of Rs. 9587.64 cr is on the basis of NPV of minimum recovery discounted @18% with a time factor of 1 year.”
SBI said that the asset reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs), FIs can take part in the e-auction which includes all categories such as Working Capital, Term Loan (CDP), Corporate Loan, export performance bank guarantee (EPBG) and standby letter of credit (SBLC).
This marks the second attempt by the State Bank Of India to sell its Essar Steel exposure after it withdrew from the process in September last year. As per the SBI notice, the last date for the submission of expression of interest in the account(s) is scheduled on 18.01.2019, whereas the date fixed for the process of e-bidding is 30.01.2019.