State Bank of India (NSEI:SBIN) has lined up six non-performing assets (NPAs) for sale to asset reconstruction companies (ARCs) to recover dues of nearly INR 4.06 billion. The six NPA accounts put up for sale to the ARCs are — Patna Bakthiyarpur Tollway with outstanding of INR 2.3066 billion; Steelco Gujarat Limited (BSE:500399) INR 0.6831 billion; GOL Offshore Limited INR 0.5075 billion; Andhra Ferro Alloys Limited INR 0.2673 billion; Guru Ashish Taxfab INR 0.1707 billion and Genix Automations Pvt Ltd. INR 0.1223 billion. "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 ARCs/banks/NBFCs/FIs, on the terms and conditions indicated there against," SBI said in the sale notices for these assets.

The e-auction for Patna Bakthiyarpur is scheduled to take place on February 23, 2022 and GOL Offshore on February 21, 2022. Genix Automations and Guru Ashish Texfab are to be auctioned on February 15, 2022, while e-auction for Steelco Gujarat and Andhra Ferro Alloys is scheduled for March 4, 2022. SBI said these sales are subject to approval by the competent authority of the bank.

The auction of Patna Bakthiyarpur Tollway, Steelco Gujarat Ltd, Andhra Ferro Alloys, Genix Automations and Guru Ashish Texfab will be held under Swiss Challenge Method, based on an existing offer in hand, who will have the right to match the highest bid, the lender said. Under the Swiss Challenge Method, an interested bidder makes a proposal for a project (here asset). The seller puts the details of the project in public so that others can match it.

After receipt of bids, the original contractor gets an opportunity to match the best bid. The interested ARCs/banks/NBFCs/FIs can conduct due diligence of these assets with immediate effect, after submitting expressions of interest and executing non-disclosure agreements with the bank.