State Bank of India intends to sell over Rs 96000 crore distressed loans to asset reconstruction companies in a fresh attempt to clean its books.
The country’s largest bank circulated a list of 331 accounts comprising Rs 96278 crore loans to Future group, Anil Ambani promoted companies, Videocon group, and Jaypee group, among others, shows a copy of note circulated by the bank and reviewed by ET.
In July, SBI circulated the list among ARCs seeking preliminary interest, said people involved in acquiring stressed loans.
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Last year, SBI circulated 168 accounts with Rs 31363 crore distressed debt, as reported by ET on May 23, 2022. The three-fold jump in stressed loans of SBI- a proxy bank for the economy- signals that non-performing loans are rising despite bankers claiming that it has peaked.
Senior SBI officials declined to comment on the matter.
The rise in the sale of distressed loans is despite a reduction in the gross nonperforming loans to Rs 91,328 crore as of June 30, 2023 from Rs 113,272 crore in the same quarter a year ago.
The list includes Rs 2254 crore loans to Future Group, Rs 5440 crore loans to Anil Ambani group companies, Rs 4701 crore to Jaypee group, and Rs 9504 crore to Videocon companies.
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It includes Future Enterprises with Rs 1138 crore loan, Future Retail (Rs 907 crore), Future Lifestyles Fashion Ltd (Rs 401 crore), and Future Consumer Ltd (Rs 108 crore). The group defaulted soon after a deal to sell the retail and wholesale businesses to Mukesh Ambani group collapsed in April 2021.
The list includes large telecom groups Reliance, Aircel and Videocon – which are undergoing insolvency processes but the resolution has almost hit a wall. It has listed Reliance Communications (Rs 3014 crore), Reliance Telecom (Rs 167 crore), three C Sivasankaran’s telcos – Aircel Ltd, Aircel Cellular ad Dishnet Wireless- with loans of Rs 6978 crore and Videocon Telecommunications with Rs 1008 crore loans.
The Jaypee group includes Jaiprakash Associates with Rs 4506 crore loans and Rs 195 crore to Jaypee Cement. Three Videocon group companies include VOVL- the oil and gas exploration company, Videocon Industries and Videocon Telecom.
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The list also has 21 power projects with an exposure of Rs 8668 crore. Of this, Anil Ambani’s Vidarbha Industries Power has the largest debt of Rs 2253 crore. Vidarbha’s lenders have scheduled a Swiss challenge auction on August 8 following an anchor offer from CFM ARC – a move that is challenged by the promoter at Bombay High Court.
Other accounts include Visa Power, Shirpur Power, Coastal Energen, ILFS Tamil Nadu Power, Regen Powertech, Surana Power and Maheshwar Hydel Power Corporation.
Aban Holdings Rs 2630 crore debt, ABG Shipyard at Rs 1757 core and Varun Resources at Rs 1558 crore, Punj Lloyd Rs 1516 crore, Nagarjuna Oil Corporation at Rs 1360 crore, and P C Jewellers at Rs 1002 crore are among other largest accounts.
