Bank of Baroda is going to sell the bad loan accounts (NPA Account). Through these accounts, the bank will recover about Rs 597.41 crore.
New Delhi: There is important news for those who have an account in Bank of Baroda. If you also have an account then pay attention… this government bank is going to sell 46 accounts. Explain that the customers who have not paid their loans, the bank will sell those accounts. This sale will be done through auction. The bank will recover about Rs 597.41 crore from these NPA accounts. Information about this has been given by issuing a notification from the bank.
Let us tell you that these accounts will be sold through online auction. These accounts can be sold in cash to Asset Reconstruction Companies (ARCs), banks or other financial institutions. The bank said that the auction process is to be held on June 21.
Let us tell you which accounts will be sold , the major accounts involved in the sale of NPA accounts are the accounts of Meena Jewels Exports and Meena Jewelers Exports, in which Rs 60.76 crore is outstanding. Along with this, Crystal Cable Industries Rs 57.49 crore, JR Foods Ltd. Rs 41.60 crore, Shree Raghuvanshi Fiber Rs 27.38 crore, Kaneri Agro Industries Rs 24.69 crore, Man Tubinox Rs 24.28 crore and Aryans Educational and Charitable Trust Rs 20.79 crore. are also included.
The last date for submitting the letter of intent in this regard has been kept as June 19. The bank has said that the work of verification of the letter of interest will be completed on the same day. According to the notification issued by the bank, following the provisions of Insolvency and Bankruptcy, the bidder will also have to give an affidavit. In which they will confirm that they are not connected in any way with the family or account of the promoter.
The Bank stated that any ECGC/CGTMSE claim received or received in any account under the sale shall be retained by it. It will not be handed over to ARCs/Banks/NBFCs or FIs. The Export Credit Guarantee Corporation (ECGC) is a government-owned organization that provides export credit insurance assistance to Indian exporters.
What is NPA Account?
According to the rules of the Reserve Bank of India (RBI), if a bank loan installment or loan is not repaid for 90 days i.e. for three months, then it is considered as a non-performing asset (NPA). In case of other financial institutions, this limit is 120 days. That is, if the EMI of a loan is not deposited for three consecutive months, then banks declare it as NPA. The meaning of NPA is that banks consider it as bad loan. Rising NPAs are not considered good for the health of a bank.
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