SBI seeks buyers for its Rs 96,000 crore distressed loans
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.
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. 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
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