Central Bank puts stressed accounts of Bhushan Power, Essar Steel on sale

Central Bank of India has put up for sale the stressed accounts of Bhushan Power & Steel, Essar Steel India, Alok Industries and Bombay Rayon fashions to recover overdue loans amounting to Rs3,321 crore. 

"In terms of the bank's policy on sale of financial assets in line with the regulatory guidelines, we place the following accounts for sale to banks/ARCs/NBFCs/FIs," Central Bank of India stated in a website document inviting bids.
The state-owned bank, which is among the worst hit by rising non-performing assets, is looking to get rid of all over-stressed assets.
According to the bid document, Bhushan Power & Steel has outstanding loans of Rs1,550.07 crore. Alok Industries owes Rs1,251 crore, Essar Steel India Rs423.61 crore and Bombay Rayon Fashions has an outstanding due of Rs96.30 crore.
Central Bank has set 20 March as the e-auction date for all these soured accounts.
The auction will be conducted on the Swiss challenge method, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002, on the 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 bank said.